The Internal Revenue Service has funds available for 1.1 million Americans, but the opportunity to claim this money is dwindling.
The IRS estimates that over $1 billion in tax refunds for the 2021 tax year remain unclaimed by taxpayers who have not filed their Form 1040 Federal Income Tax returns. The typical refund amount is $781.
In Texas alone, approximately 102,200 individuals are owed money, with a median refund of $810, as reported by the IRS.
The deadline to file the tax return is April 15. Federal law allows taxpayers three years to file and claim their tax refunds. After this period, any unclaimed funds revert to the U.S. Treasury.
Additional credits available
The IRS cautioned that taxpayers may miss out on more than just their tax refunds if they fail to file. Low and moderate-income workers may qualify for the Earned Income Tax Credit, which may provide up to $6,728 for those with qualifying children.
The EITC income limits for the 2021 tax year are as follows:
$51,464 ($57,414 for married couples filing jointly) for individuals with three or more qualifying children;
$47,915 ($53,865 if married filing jointly) for those with two qualifying children;
$42,158 ($48,108 for married couples) for individuals with one qualifying child;
$21,430 ($27,380 for couples filing jointly) for those without qualifying children.
Caution from the IRS
There are scenarios where a taxpayer’s 2021 tax refund may be withheld by the IRS. If someone has failed to file tax returns for 2022 or 2023, their refund could be postponed until those returns are filed. Additionally, any refund for 2021 may be used to cover outstanding amounts owed to the IRS or state tax authority, or to offset unpaid child support or overdue federal debts, such as student loans.
Need assistance with your 2021 tax return?
You can obtain most of the necessary documents for filing a tax return online. Click here for a comprehensive list and guidance on what steps to follow.
