No one likes giving money to other people, especially not the federal government when it comes to tax refunds (as high as taxes are in America, right?). Alright, here’s good news for those who love receiving money they didn’t expect: the Internal Revenue Service (IRS) reported that more than 1.1 million taxpayers in the US 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, although amounts vary depending on the state and additional applicable credits, and some may be several thousand dollars, depending on how much corresponds to each taxpayer, since each case is unique and unrepeatable.
You should act NOW to avoid losing your tax refund
Four states exceed the national average for unclaimed refunds: Massachusetts ($936), Rhode Island ($946), Pennsylvania ($993), and New York ($995). These values do not include possible additional benefits such as the Recovery Rebate Credit, which allowed up to $1,400 per person or $5,600 for couples with two dependents in 2021. Those who did not receive economic stimulus during the pandemic could access this retroactive benefit.
The IRS warns that, in addition to the base refund, taxpayers may obtain compensation for the Earned Income Tax Credit (EITC) or other subsidies. However, the agency will adjust any previous stimulus-related payments. This year, an additional $1 billion has already been distributed to 1 million people who failed to apply for the credit on past returns.
Will the government shutdown affect IRS refunds?
Although a potential government shutdown threatened operations in March, the Senate approved funding to keep the IRS operational through September. However, cuts implemented during the Trump administration affected dozens of offices all over the United States. Until mid-March, professionals report processes without significant delays in reimbursements. So you can breathe easy because, if you met the requirements, you will receive your money on the date you estimate.
The federal deadline for the current tax season is April 15, with an extension to October 15. Those who file after the deadline risk fines or loss of refunds. Electronic returns are typically processed in three weeks, while physical returns take four or more, according to the IRS.
Where’s My Refund?
The IRS mobile app and the Where’s My Refund? tool allow you to monitor the status of returns. Direct deposit speeds up times: 90% of refunds are issued in less than 21 days. As of February 28, the average amount returned was $3,382, 6.3% more than in 2023.
With less than a month until the deadline, the IRS invites you to verify eligibility using forms available on its official website, which is IRS.gov. Organizations like Volunteer Income Tax Assistance offer free help to people with incomes under $60,000 or with disabilities.
