Unclaimed tax refunds 2021: Millions of Americans could lose $946 in unclaimed refunds, and the IRS issues an emergency when the country deadlines are quickly closed.
Why do so many Americans still miss the 2021 tax refund?
According to the IRS, about 1.1 million taxpayers have not filed their 2021 federal income tax returns, and the clock is ticking. The agency estimates that since that year, unclaimed refunds have exceeded $1 billion, just sitting and waiting to be asked. If no action is taken on Monday, April 15, unclaimed funds will become the property of the U.S. Treasury Department.
For many Americans, this is free money they simply don’t collect. The national average unclaimed refund is $781, but in a state like Rhode Island, the median refund is even higher – $946. This means half of the unclaimed refunds in Rhode Island are over $946, while half are less.
Which states have the most unclaimed refunds?
Some states have a particularly large amount left on the table. Here’s about how much is still unclaimed:
- California: About $92 million unclaimed refund
- Michigan: More than $37 million is still waiting to be asked
- Rhode Island: An estimated $3.5 million unclaimed refund for approximately 3,600 residents
Nationwide, as of March 11, the IRS reported an unclaimed refund of $1,025,336,800 in 2021, a major issue affecting families across the country.
What happens if you don’t submit 2021 return by April 15?
Under federal law, taxpayers usually have a three-year window to submit their returns and request a tax refund. For the 2021 tax year, the deadline falls on April 15, 2025. Even if you are eligible for a refund, the money can be retained if you owe 2022 or 2023 taxes or have outstanding federal debts, such as child support or student loans. The IRS will first return your 2021 refund.
What points can increase your 2021 refund?
In addition to basic refunds, eligible taxpayers can enjoy additional credits including:
- Recover Rebate Credit: If you missed the stimulus check during the pandemic, you are still eligible. The IRS said it allocated about $2.4 billion in automatic payments to taxpayers who have not yet claimed credit in December 2024, but if you haven’t submitted it, you’ll have to do so to ask you.
- Income Tax Credit (EITC): This credit is worth up to $6,728 depending on your family. The IRS shared this 2021 income threshold to qualify for EITC:
- With three or more children
- With two children
- $42,158 (if married co-submitted documents) with a child
- $21,430 ($27,380 if married co-submits)
Files submitted by April 15 can unlock hundreds or even thousands of dollars in extra cash.
If you aren’t ready before April 15, can you have more time?
Yes, the IRS allows taxpayers to submit extensions when it takes more time. You can do this by submitting Form 4868, an application that automatically extends the time of submission, which allows you to submit your return until October 15th.
You can submit an extension online through your IRS electronic file partner, work with a tax professional or mail forms. Remember that the extension of the archive is not a deferral to be paid – if you owe taxes, those still need to be paid by April 15 to avoid fines.
How long does it take to submit a refund?
The IRS said most electronic documents and those who choose to deposit money directly can get a refund within 21 days. If you mail it in your return, it can take a month or more, especially when thousands of people are rushing to file an application before the deadline.
So far, the average refund was $1,928 in 2025, according to the IRS. Those who use direct deposit receive more on average – $2,069. This means your 2021 refund, especially if the tax credit is increased, may now have a real impact.
You can use the IRS tool “Where is my refund?” and you can update it within 24 hours of electronic application, usually within four weeks of mailing back.
Don’t put money on the table
With over $1 billion in unclaimed refunds still awaiting claims, the news is clear – your 2021 return by April 15. Even if you don’t think you’re qualified, it’s worth double checking. You may owe you more awareness, especially if you are eligible for credit lines such as restoration rebates or getting income tax credit.
As the IRS said, this is the money that belongs to the taxpayer, not the government, but only timely action is taken.
FAQ:
What is the deadline for the IRS to require unclaimed tax refunds in 2021?
You must submit April 15, 2025or lose a refund.
Can I still get rebate credit through the 2021 tax refund?
Yes, if you ask 2021 Return On the deadline.
