Don’t Miss Out on Over $1 Billion in Unclaimed Tax Refunds: Act Now Before April 15 Deadline
IRS Urges Taxpayers to File 2021 Returns and Claim Refunds – Deadline Approaches
March 11, 2025 – WASHINGTON, D.C. – The Internal Revenue Service (IRS) is warning taxpayers that more than $1 billion in refunds for the 2021 tax year remain unclaimed, and the deadline to file a return and claim those funds is quickly approaching. Taxpayers have until April 15, 2025, to file their 2021 tax returns and claim their refund.
Over 1.1 million people nationwide are eligible for refunds but have yet to file their Form 1040, Federal Income Tax Return, for the 2021 tax year. The IRS estimates that the median refund for 2021 is $781. This means that half of the refunds will be larger, and half will be smaller. Importantly, this amount doesn’t account for additional credits like the Recovery Rebate Credit, which could further increase the refund amount.
Taxpayers typically have three years to file a return and claim any eligible refunds. After this window closes, any unclaimed refunds revert to the U.S. Treasury.
Potential Refund Losses: More Than Just Taxes Withheld
Missing the filing deadline doesn’t just mean losing out on tax refunds. For many low- and moderate-income workers, the Earned Income Tax Credit (EITC) could be a significant part of the refund. For the 2021 tax year, the EITC could be worth up to $6,728 for qualifying taxpayers with children. The thresholds for eligibility in 2021 were:
- $51,464 ($57,414 if married filing jointly) for those with three or more qualifying children.
- $47,915 ($53,865 if married filing jointly) for taxpayers with two qualifying children.
- $42,158 ($48,108 if married filing jointly) for those with one qualifying child.
- $21,430 ($27,380 if married filing jointly) for individuals without qualifying children.
The EITC helps provide financial relief to individuals and families with lower incomes, so it’s critical that eligible taxpayers file before the deadline.
Refunds May Be Delayed or Reduced
It’s important to note that the IRS may hold 2021 tax refunds for individuals who haven’t filed tax returns for the 2022 or 2023 tax years. Furthermore, any outstanding debts, such as unpaid child support or student loans, may be deducted from the 2021 refund. Taxpayers should ensure they’re up to date on their filing status to avoid delays or reduced refund amounts.
How to File for a 2021 Refund
Taxpayers who need to file a 2021 tax return can find the necessary forms and instructions on the Velin & Associates, Inc. website under the “Forms -> IRS Forms” section.
Need Help Filing? Call Velin & Associates, Inc. Today!
If you need assistance with filing your 2021 tax return and claiming your refund, contact Velin & Associates, Inc. at 323-902-1000 or via email at dmitriy@losangelescpa.org. Our team of experienced tax professionals is here to ensure you don’t miss out on any refunds or credits that you may be entitled to.
Our firm provides the information in this e-newsletter for general guidance only, and does not constitute the provision of legal advice, tax advice, accounting services, investment advice, or professional consulting of any kind. The information provided herein should not be used as a substitute for consultation with professional tax, accounting, legal, or other competent advisers. Before making any decision or taking any action, you should consult a professional adviser who has been provided with all pertinent facts relevant to your particular situation. Tax articles in this e-newsletter are not intended to be used, and cannot be used by any taxpayer, for the purpose of avoiding accuracy-related penalties that may be imposed on the taxpayer. The information is provided "as is," with no assurance or guarantee of completeness, accuracy, or timeliness of the information, and without warranty of any kind, express or implied, including but not limited to warranties of performance, merchantability, and fitness for a particular purpose.