The Internal Revenue Service (IRS) has confirmed that 1.1 million Americans are yet to claim their $768 median tax refunds for the 2021 tax year.
With the clock ticking, eligible taxpayers have until April 15, 2025 to claim their refunds before the funds become property of the U.S. Treasury.
This article breaks down important information, including eligibility, refund amounts, and key dates to ensure you don’t miss out on this financial opportunity.
IRS Confirms $768 Median Refunds
As of now, the IRS reports that the median refund for the 2021 tax year is approximately $768. While the median refund is $768, some individuals could qualify for a higher amount depending on their specific tax situation, while others may receive a smaller refund. Importantly, these refunds exclude any tax credits such as:
- Earned Income Tax Credit (EITC)
- Child Tax Credit (CTC)
- Recovery Rebate Credit
Taxpayers who qualify for these credits may receive even larger refunds, making it essential to act quickly before the deadline.
| Refund Amount | Eligible Taxpayers | Claim Deadline |
|---|---|---|
| $768 | Median Refund | April 15, 2025 |
| $995 | Highest Refund (NY) | April 15, 2025 |
| $600 | Lower Refund (CA) | April 15, 2025 |
Why Are There Unclaimed Refunds?
Despite efforts to inform taxpayers, millions of people may have either missed filing their taxes or forgotten to claim their refunds. There are several reasons for this, such as:
- Overlooked Filing: Some individuals may not realize they are eligible for a refund.
- Moved Without Forwarding Address: Many people who moved and did not update their address with the IRS could have missed their refund checks.
- Low-Income Taxpayers: Taxpayers who don’t file due to low income may be unaware that they could still receive a refund.
- Lack of Awareness: Not all taxpayers are aware of the April 2025 deadline to claim their 2021 refund.
Refunds by State: Where Are the Unclaimed Funds?
Certain states have a higher number of unclaimed refunds. The IRS has broken down the median refund by state, with some states having notably higher or lower amounts:
Top States for Unclaimed Refunds:
- New York: Median refund of $995, with approximately 73,000 taxpayers still unclaimed.
- California: Median refund of $600, with 116,300 taxpayers not claiming their refunds.
Other States:
- Texas: Median refund around $760.
- Florida: Median refund near $700.
These statistics show that even if a state’s median refund is lower, it still represents a significant sum for many individuals. In California, for instance, even though the refund is lower than in New York, the sheer volume of unclaimed refunds represents a huge opportunity.
Eligibility Criteria to Claim Refunds
To qualify for the unclaimed 2021 tax refund, you must meet the following basic eligibility criteria:
- File a 2021 Tax Return: You must have filed your tax return for 2021 and meet all the eligibility criteria for a refund.
- Residency: The taxpayer must be a U.S. citizen or resident.
- Income Limits: Your income must fall within the threshold to qualify for a refund, which typically depends on factors such as filing status and number of dependents.
- Timely Filing: You must file your return and claim your refund by April 15, 2025 to avoid losing the money.
How to Claim Your Unclaimed Refund
If you are eligible and wish to claim your unclaimed 2021 tax refund, follow these steps:
- File a 2021 Tax Return: If you haven’t already, file a tax return for 2021. Use the IRS Free File program if you qualify.
- Complete the Necessary Forms: Ensure you complete the Form 1040 and any other forms necessary for tax credits.
- Provide Required Documentation: Include any necessary documents such as W-2s, 1099s, and proof of address.
- Submit Your Tax Return: Submit your tax return online through the IRS e-file system, or send it by mail.
- Check Your Refund Status: Use the IRS “Where’s My Refund” tool to track your refund status.
Millions of Americans are still eligible for unclaimed 2021 tax refunds, totaling over $1 billion. With the IRS confirming that the deadline to claim refunds is April 15, 2025, it’s crucial to act quickly. Check eligibility, file your tax return, and make sure you receive the money you are entitled to.
FAQs
How much is the median refund for 2021?
The median refund for the 2021 tax year is approximately $768, though it can vary depending on eligibility for additional tax credits.
What is the deadline to claim the 2021 tax refund?
April 15, 2025 is the final deadline to claim your 2021 tax refund.
Can I receive additional credits on top of the median refund?
Yes, you may qualify for additional credits like the Earned Income Tax Credit (EITC), Child Tax Credit (CTC), or Recovery Rebate Credit, which could increase your total refund.