(NEXSTAR) — The IRS says an estimated $1 billion in tax refunds from the 2021 tax 12 months might grow to be the property of the U.S. Treasury if over 1.1 million People don’t take motion quickly.
The refunds belong to those that didn’t file their Kind 1040 Federal Earnings Tax Return for the 2021 tax 12 months (that means the taxes filed in April 2022).
In line with the IRS, the median tax refund is $781, not together with any relevant credit.
In some states, the IRS exhibits the median potential refund is even larger: In Pennsylvania, Massachusetts, and Rhode Island, median refunds might exceed $900.
The searchable desk under exhibits how many individuals per state have but to file their federal revenue tax return for the 2021 tax 12 months, in addition to the median potential refund for every state.
As a result of People sometimes have three years to file and declare tax refunds, the deadline to say these funds is April 15, 2025. The one option to make your declare is submitting your tax 12 months 2021 return.
Failing to say your refund might additionally depart you with out the Earned Earnings Tax Credit score you certified for in 2021. The IRS experiences that, on the time, the thresholds for the EITC have been:
- $51,464 ($57,414 if married submitting collectively) for these with three or extra qualifying youngsters
- $47,915 ($53,865 if married submitting collectively) for folks with two qualifying youngsters
- $42,158 ($48,108 if married submitting collectively) for these with one qualifying little one
- $21,430 ($27,380 if married submitting collectively) for folks with out qualifying youngsters
The EITC was value as a lot as $6,728 for the 2021 tax 12 months.
Even when you apply in your 2021 tax refund earlier than the April 15 deadline, it could be withheld when you have not but filed tax returns for the 2022 and 2023 tax years, the IRS warns. For those who owe the IRS or a state tax company, or have unpaid little one assist or different federal money owed (like pupil loans), your refund shall be utilized to them first.
The IRS recommends amassing any 2021 tax paperwork — Varieties W-2, 1099 or 5498, for instance — earlier than submitting your federal tax return. You’ll be able to entry tax information and transcripts utilizing the IRS’s Individual Online Account or request a tax return or account transcript by way of mail utilizing the Get Transcript by Mail tool. Extra particulars may be discovered on the IRS’s website.
The deadline to file your 2024 taxes is April 15 this 12 months.
