The IRS warns that roughly $1 billion in tax refunds from fiscal year 2021 could end up in the U.S. Treasury if more than 1.1 million Americans don’t act soon.
These refunds are for those who did not file their Federal Tax Return (Form 1040) for 2021, the taxes that were due in April 2022.
According to the IRS, the average refund is $781, not counting applicable tax credits.
You may also read: Will IRS Staff Cuts Delay My 2025 Tax Refund?
Where Are Refunds Highest?
In some states, the amounts are larger: Pennsylvania, Massachusetts, and Rhode Island: Average refunds exceed $900.
✅ Remember: Taxpayers have three years to claim refunds. The only way to get yours is by filing your 2021 tax return before this date.
➡️ You might also miss out on the Earned Income Tax Credit (EITC), which in 2021 was worth up to $6,728 for families with children. The income requirements were:
- $51,464 ($57,414 for couples) with 3+ kids
- $47,915 (53,865 for couples) with 2 kids
- $42,158 (48,108 for couples) with 1 child
- $21,430 (27,380 for couples) with no children
🔎 Estimated number of people per state that may be owed a tax refund:
Important Warnings
At Wave Tax, we always tell our clients that the IRS may withhold their 2021 refund if:
- You haven’t filed your 2022 and 2023 tax returns.
- You owe back taxes, child support, or federal student loans.
How to Claim Your Refund
- Gather your documents: 2021 W-2s, 1099s, or 5498 forms.
- Access your records: Use the IRS’s Individual Online Account or request transcripts by mail with the “Get Transcript by Mail“ tool.
- File your 2021 return: Submit it before April 15, 2025.
🔗 More details on the IRS website: www.irs.gov
🚨 Reminder: The deadline to file 2024 taxes is April 15 of this year.
At Wave Tax, we’re here to help you plan your tax year. You can reach us at info@wavetax.us