The IRS said that people still have not claimed more than $1 billion in tax refunds from 2021. About a million taxpayers could lose these funds if they do not file their taxes by April 15, 2025, which is the last day to ask for refunds for that fiscal year.
Federal law says that people can only get refunds up to three years after the date they filed their taxes. The money is given to the government after this time. It ends on April 15, 2021, for 2021. The IRS says that people who do not file will lose an average of $780.
Hurry up: you’re gonna lose your 2021 tax refund if you don’t act SOON
The government said in a blog that if you did not file a tax return in 2021, you may not be able to get any refunds you are owed. People who owe taxes are fined, but people who are waiting for refunds are not usually looked into for delays.
For people who filed their taxes late, it is important to get old tax documents like W-2 or 1099 forms. With an IRS.gov account, you can see your income records and transcripts, but it could take weeks to get hard copies. The agency says that digital options should be tried first.
Can I use an online tax preparer?
Most tax software does not let you file online returns from previous years. People who owe taxes must buy desktop versions for 2021, fill out the forms, and print them out to mail. This process takes longer, especially if information from past employers is needed.
Some taxpayers could also get the Recovery Rebate Credit, which is linked to the stimulus checks they will get in 2021. People who are single can get up to $1,400, and couples can get up to $2,800. The amount goes up if you have eligible dependents. For a family of four, the maximum amount is $5,600.
People who qualify for the credit did not have to get the original stimulus. But it has to be claimed on the tax return for 2021. The IRS warns that people who do not do this will lose both the refund and the credit.
Tax preparation options available for the 2024-2025 tax season
H&R Block, Liberty Tax, and Jackson Hewitt can help you with old tax returns in person or online. TaxAct stands out because its software is cheap, and the IRS Free File program gives free tax forms to people with low incomes. There is no digital platform that lets you electronically send in late taxes.
The IRS says, “You would have to buy and download the company’s 2021 desktop edition, then print and mail the completed return.” Some businesses offer help with finding lost documents, but the wait time depends on how complicated the case is.
People who owe money to the IRS are told to start the process early. Errors can be avoided by checking updated mailing addresses, bank statements, and information with previous employers. People who are behind on their documents can ask for extensions, but these do not change the deadline of April 15, 2025.
