No one enjoys giving money to others, especially the federal government when it comes to tax refunds (considering how high taxes are in America). Alright, here’s good news for those who enjoy receiving money unexpectedly: The Internal Revenue Service (IRS) reports that over 1.1 million US taxpayers have until April 15 to claim nearly $1.025 billion in refunds for the 2021 tax year.
The agency estimates that the median number of pending refunds is around $781, but amounts vary depending on the state and applicable credits, and some may be several thousand dollars. Each case is unique and unrepeatable.
You should act NOW to avoid losing your tax refund
Four states have more unclaimed refunds than the national average: Massachusetts ($936), Rhode Island ($946), Pennsylvania ($993), and New York ($995). The Recovery Rebate Credit, worth up to $1,400 per person or $5,600 for couples with two dependents in 2021, is not included in these values. Those who did not receive economic stimulus during the pandemic could take advantage of this retroactive benefit.
The IRS warns that, in addition to the base refund, taxpayers may receive compensation for the Earned Income Tax Credit (EITC) or other subsidies. However, the agency will adjust any previous stimulus payments. This year, an additional $1 billion has been distributed to 1 million people who failed to apply for the credit on previous returns.
Will the government shutdown affect IRS refunds?
Despite a potential government shutdown in March, the Senate approved funding to keep the IRS operational until September. However, cuts implemented during the Trump administration affected dozens of offices across the US. Until mid-March, professionals report processes without significant reimbursement delays. So you can rest easy because, if you met the requirements, you will receive your money on the date you specified.
The federal tax deadline is April 15, with an extension until October 15. Those who file after the deadline risk receiving fines or losing their refunds. According to the IRS, electronic returns are typically processed in three weeks, while physical returns can take four weeks or more.
Where’s My Refund?
You can track the status of your returns using the IRS mobile app and Where’s My Refund tool. Direct deposit reduces wait times: 90% of refunds are issued within 21 days. As of February 28, the average return was $3,382, 6.3% higher than in 2023.
With less than a month until the deadline, the IRS invites you to verify your eligibility using forms found on its official website, IRS.gov. Volunteer Income Tax Assistance provides free assistance to individuals with incomes below $60,000 or with disabilities.
