OVER 1.1 million Americans still have unclaimed tax refunds for 2021.
Those who file their taxes before the April 15 deadline may receive a $995 payment.
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The Internal Revenue Service (IRS) says more than $1 billion in refunds remain unclaimed.
These refunds are owed to taxpayers who haven’t filed their 2021 federal income tax returns.
The unfiled returns are for Form 1040, the standard Federal Income Tax Return.
The median refund for 2021 is $781, according to IRS estimates.
This means half of the refunds are higher than $781 while the other half are lower.
The estimate does not include additional credits, which may include the Recovery Rebate Credit or other tax benefits.
Under federal law, taxpayers usually have three years to file and claim a refund.
If they miss that window, the money goes to the U.S. Treasury.
The IRS released a state-by-state breakdown that shows how many people in each state may still be owed refunds.
It also lists the median refund amount for each state.
Missing the filing deadline could cost people more than just their refund.
Low- and moderate-income workers may also miss out on the Earned Income Tax Credit (EITC).
For the 2021 tax year, the EITC was worth up to $6,728.
This credit is designed for individuals and families with incomes under certain limits.
EITC 2021 Income Thresholds
Here were the 2021 income thresholds:
- $51,464 ($57,414 for married couples) for families with three or more qualifying children.
- $47,915 ($53,865 if married) for those with two qualifying children.
- $42,158 ($48,108 if married) for one qualifying child.
- $21,430 ($27,380 if married) for people with no qualifying children.
The IRS also issued a reminder that people seeking a 2021 refund must be up to date on other filings.
That means they must file their 2022 and 2023 returns too.
Refunds may also be reduced or withheld for other reasons.
This includes money still owed to the IRS or to a state tax agency.
Refunds can also be used to pay past-due child support, student loans, or other federal debts.Time is running out.
Taxpayers must file by the three-year deadline or lose their 2021 refund for good.