More than 1.1 million taxpayers could lose tax refunds for the 2021 tax year if they do not file their return by April 15, 2025. The IRS reported that these funds, which exceed $1 billion, will be transferred to the US Treasury if they are not claimed in time. This deadline applies only to the year 2021, since the deadlines for the years 2019 and 2020 have already expired.
The median refund for 2021 is $781, while the estimated average per person is around $909. This difference reflects that some taxpayers could access additional credits, such as the Earned Income Tax Credit (EITC), which in 2021 reached up to $6,728 for eligible families. However, these amounts are not included in the total figure announced by the organization.
If you don’t act now, you could irreversibly lose your tax refund.
Under IRS rules, taxpayers have three years from the filing deadline to claim refunds. For 2021, the deadline expires on April 15, 2025. Unlike previous years, such as 2020 (whose deadline was May 2024) or 2019 (July 2023), there are no subsequent extensions or recoveries. Once the period expires, the funds become property of the State.
The agency has emphasized that the unclaimed amounts are not related to calculation errors by the entity, but rather to the lack of action by taxpayers. Among the causes are changes of address that are not updated, lost checks or ignorance about the obligation to declare, even if the income is below the required threshold.
Available tools to verify tax refund eligibility
The IRS recommends using platforms such as Where’s My Refund? to track pending payments. Additionally, your EITC Wizard helps you determine if you qualify for tax credits. These resources are key for those who have doubts about their tax situation, especially low- and middle-income workers, who are usually the main beneficiaries of aid such as the EITC.
Although there is no official data on unclaimed refunds for 2022, the deadline for this fiscal year expires in April 2026. Officials warn that, historically, about 10% of annual refunds remain unclaimed, according to analysis by specialized organizations.
Those who do not claim their refund before April 2025 will lose the money permanently. Additionally, failing to file may affect eligibility for future benefits, such as state subsidies or education loans. The IRS reminds that, in cases of previous tax debts, the refund could be withheld to settle outstanding obligations.
To avoid losses, it is suggested to consult records from previous years, confirm postal addresses and use forms such as 1040, which are mandatory to claim. Those who did not file in 2021 but paid taxes through employment withholdings or estimated payments are the main candidates for refunds.