The IRS has issued a notice indicating that approximately $1 billion in unclaimed tax refunds from 2021 are still up for grabs.
Residents in one specific state could receive up to $860 or more per filer.
1
Approximately 1.1 million Americans have not yet submitted their 2021 federal tax return, with the median refund projected at $781.
Again, around 1.1 million Americans have yet to file their 2021 Form 1040, which could mean significant refund amounts are at stake.
While most individuals filed in 2022, those who haven’t might be eligible for an average refund of $781.
To receive this, filers need to submit their returns by the April 15 deadline to avoid penalties.
Nevertheless, some taxpayers could qualify for even larger refunds.
Low- and moderate-income earners should investigate their eligibility for the Earned Income Tax Credit (EITC), which can increase refunds by as much as $6,728.
“According to the law, taxpayers generally have three years to file and claim their tax refunds,” the IRS stated in a press release.
“If they fail to file within this three-year window, the funds become the property of the US Treasury.”
As the deadline approaches, over a million Americans face the risk of permanently losing out if they do not file on time.
BENEFITS BY STATE
In Connecticut, 11,700 residents are set to receive significant payouts, with a median potential refund of $860.
Additionally, the IRS indicates that taxpayers in California, Florida, and Illinois are collectively owed over $42 million in unclaimed tax refunds.
Even smaller states have substantial amounts waiting to be claimed, such as more than $2 million in North Dakota and over $3 million in Montana.
New York taxpayers who have not filed are eligible for the highest average refund, estimated at $995, while California filers have the lowest average at $600.
For more details, please visit the IRS website.
The agency highlighted that the number of individuals who failed to file their 2021 taxes is notably higher than in the previous year.
Approximately 900,000 Americans missed their refunds prior to the 2020 deadline, as reported by the IRS.
The average tax refund during that period was $3,138.
PROCESSING TIMES
The IRS has previously informed taxpayers that certain refunds may take longer to process this year compared to past tax seasons.
The tax season, which occurs from January 27 to April 15, includes several national holidays.
Typically, taxpayers can expect to receive their refunds within 21 days after filing.
However, those who file their 1040 forms before a holiday may experience delays until banking services resume.
The IRS estimates that it will handle over 140 million individual returns before the federal deadline.
