APPROXIMATELY $1 billion in tax refunds from the 2021 tax year are set to be reclaimed by the U.S. Treasury, according to the IRS.
Over 1.1 million Americans are eligible to claim those refunds immediately.
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Those who did not file their Form 1040 Federal Income Tax Return for the 2021 tax year are entitled to the refunds.
The median tax refund is $781, excluding any applicable credits, according to the IRS.
In certain states, the IRS reports that the median potential refund could be even higher.
For example, in Pennsylvania, Massachusetts, and Rhode Island, median refunds may exceed $900.
Americans typically have up to three years to file and claim tax refunds, with the deadline to do so being April 15, 2025.
In order to claim your refund, you must file your 2021 tax return.
2025 Tax Season
Tax season started on January 27 and folks must have theirs completed filed on April 15.
Those who fail to file by that time may face penalties.
However, taxpayers who need more time may file for an extension – this gives them until October 15.
The way to do this is by filling out Form 4868, the Application for Automatic Extension of Time To File U.S. Individual Income Tax Return.
This can be done by mail, online with an IRS e-filing partner, or through a tax professional.
While there’s no set schedule, the IRS revealed that taxpayers may receive refunds within 21 days of filing.
Just be sure to avoid making mistakes on any forms as that could tack on extra time.
Those filing through mail will likely get their returns within a month or could even face delays as the IRS processes millions.
As of January 31, the average refund amount totaled $1,928, per the IRS.
This is compared to the $1,395 for the same period in 2024.
The average direct deposit refund for 2025 was even higher, the IRS said, at $2,069.
To check the status of your refund, The IRS has an online tool called Where’s My Refund?
This works within 24 hours of e-filing and generally within four weeks of filing a paper return.
If you don’t claim your refund, you could also miss out on the Earned Income Tax Credit (EITC) that you were eligible for in 2021.
According to the IRS, the EITC thresholds in 2021 were as follows:
- $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 those 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 could have been as high as $6,728 for the 2021 tax year.
Even if you file your 2021 tax return by the April 15 deadline, the IRS warns that your refund may be withheld if you haven’t filed returns for the 2022 and 2023 tax years.
Additionally, if you owe the IRS, a state tax agency, or have unpaid child support or federal debts (such as student loans), your refund will be used to settle those debts first.
The IRS recommends gathering relevant 2021 tax documents, such as Forms W-2, 1099, or 5498, before filing your federal tax return.
You can access your tax records and transcripts through the IRS’s Individual Online Account or request them by mail using the Get Transcript by Mail tool.
More information is available on the IRS website.
The deadline to file your 2024 taxes is April 15 this year.
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