THE IRS is warning millions of Americans to keep their eyes on a fast-approaching deadline as they risk losing out on billions of dollars in tax refunds.
Time is running out for residents of a key state to claim the $946 tax refund they are owed for the 2021 tax year.
Roughly 1.1 million Americans are still owed refunds for tax year 2021 but must submit their returns to the IRS by April 15, the federal agency announced in early March.
Many taxpayers have yet to file their Form 1040, or Federal Income Tax Return, for the 2021 tax year, leaving over $1 billion in unclaimed refunds, according to IRS estimates.
Rhode Island comprises roughly $3.5 million of the IRS pot, with an estimated 3,600 residents that still have not claimed the state’s median potential refund of $946.
This means that half of the refunds are over $946 while half are less than this amount.
Other states, such as California and Michigan, have even more cash up for grabs.
For example, in California, around $92 million in refunds for the 2021 tax year have yet to be claimed by residents, while over $37 million remains on the table for Michigan residents.
Across all US states, the IRS estimated that $1,025,336,800 remained unclaimed as of March 11, with a median refund amount of $781 for 2021.
The actual refund amount that Americans receive will vary depending on their household’s tax situation.
Taxpayers generally must file and claim their tax refunds within three years under the law, giving them until Tax Day on April 15 to submit their 2021 tax returns and claim the money owed to them.
If Americans fail to do so by the deadline next Tuesday, then the money will become the property of the US Treasury.
Taxpayers looking to claim their 2021 tax refunds may see the money held if they have not yet filed their 2022 and 2023 tax returns, noted the IRS.
The government agency also warned taxpayers that 2021 refunds will first be applied to amounts still owed to the IRS or a state tax agency.
The refund money may be used to offset unpaid child support or other past due federal debts like student loans.
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Americans may be entitled to even more cash, as the numbers and estimates shared in the IRS’ announcement last month did not include the Recovery Rebate Credit or other credits they may be eligible for.
The Recovery Rebate Credit is a refundable credit for Americans who did not receive one or more stimulus checks during the pandemic.
More on stimulus checks
STIMULUS checks have been landing in the bank accounts of Americans since the beginning of the coronavirus crisis.
IRS stimulus check tool – how to track down your payment Track down your missing stimulus check Why haven’t I got my stimulus check yet? Six reasons why you haven’t received your third stimulus check yet 10 states and cities giving out stimulus checks and other payments before ChristmasThe IRS shared in late December its plans to distribute automatic payments worth an estimated $2.4 billion total to those who did not claim the Recovery Rebate Credit on their 2021 tax returns.
Americans who failed to claim any portion of the credit on their 2021 tax return were sent automatic payments in December and do not need to take any action.
However, those who have yet to submit their 2021 tax returns may qualify for a refund if they file and claim the Recovery Rebate Credit by Tax Day on April 15.
Another credit that Americans risk losing out on if they don’t file their 2021 tax returns is the Earned Income Tax Credit, or EITC, which was worth up to $6,728 that year for taxpayers with qualifying children.
The credit, available to many workers with low and moderate income, aids individuals and families with incomes below certain thresholds.
According to the IRS, the thresholds for 2021 were:
$51,464 ($57,414 if married filing jointly) for people with three or more qualifying children $47,915 ($53,865 if married filing jointly) for those with two qualifying children $42,158 ($48,108 if married filing jointly) for people with one qualifying child, and $21,430 ($27,380 if married filing jointly) for those without qualifying childrenThe helpful credit could provide up to $7,830 for eligible individuals this year – only two requirements must be met.
If you’re stressing over the April 15 deadline, the IRS has revealed a life-saving “automatic extension” on tax returns and payments – see if you qualify.
2025 Tax Season
Tax season started on January 27 and folks must have theirs completed filed on April 15.
Those who fail to file by that time may face penalties.
However, taxpayers who need more time may file for an extension – this gives them until October 15.
The way to do this is by filling out Form 4868, the Application for Automatic Extension of Time To File U.S. Individual Income Tax Return.
This can be done by mail, online with an IRS e-filing partner, or through a tax professional.
While there’s no set schedule, the IRS revealed that taxpayers may receive refunds within 21 days of filing.
Just be sure to avoid making mistakes on any forms as that could tack on extra time.
Those filing through mail will likely get their returns within a month or could even face delays as the IRS processes millions.
As of January 31, the average refund amount totaled $1,928, per the IRS.
This is compared to the $1,395 for the same period in 2024.
The average direct deposit refund for 2025 was even higher, the IRS said, at $2,069.
To check the status of your refund, The IRS has an online tool called Where’s My Refund?
This works within 24 hours of e-filing and generally within four weeks of filing a paper return.
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