If more than 1.1 million taxpayers do not file their returns by April 15, 2025, they risk losing their tax refunds for the 2021 tax year. The IRS stated that if these funds, which exceed $1 billion, are not claimed within a certain time frame, they will be transferred to the US Treasury.
This deadline only applies to the year 2021, as the deadlines for 2019 and 2020 have already passed.
The median refund for 2021 is $781, with the estimated average per person being around $909. This difference reflects the fact that some taxpayers may be eligible for additional credits, such as the Earned Income Tax Credit (EITC), which in 2021 could be worth up to $6,728 for eligible families. However, these sums are not included in the total figure announced by the organization.
If you don’t act now, you could irreversibly lose your tax refund.
According to IRS rules, taxpayers have three years from the filing deadline to claim refunds. For 2021, the deadline is April 15, 2025. Unlike previous years, such as 2020 (May 2024) or 2019 (July 2023), there are no further extensions or recoveries. When the period expires, the funds become state property.
The agency has emphasized that the unclaimed amounts are due to taxpayers’ failure to act, rather than the entity’s calculation errors. Changes in address that are not updated, lost checks, or ignorance of the obligation to declare, even if the income is below the required threshold, are some of the causes.
Available tools to verify tax refund eligibility
The IRS recommends tracking pending payments with platforms like Where’s My Refund? In addition, your EITC Wizard can help you determine whether you are eligible for tax credits.
These resources are critical for those who are concerned about their tax situation, particularly low- and middle-income workers, who are typically the primary recipients of aid programs such as the EITC.
Although there is no official data on unclaimed refunds for 2022, the fiscal year ends in April 2026. Officials warn that historically, about 10% of annual refunds go unclaimed, according to specialized organizations.
Those who do not claim their refund by April 2025 will lose it permanently. Failure to file may also affect future eligibility for benefits such as state subsidies or education loans. The IRS reminds taxpayers that if they have previously owed taxes, their refunds may be withheld to pay off those debts.
To avoid losses, consult previous years’ records, confirm postal addresses, and use forms such as 1040, which are required to claim. Those who did not file in 2021 but paid taxes through employment withholdings or estimated payments are the most likely to receive a refund.
