Unclaimed tax refunds totaling about $1 billion remain unclaimed at the IRS because millions of taxpayers haven’t filed their tax returns for the 2021 tax year. (In other words, you might have money waiting for you and not even know it).
As former IRS Commissioner Danny Werfel has said, “Many people may have overlooked or forgotten about these refunds.” As a result, the IRS recommends taxpayers start soon to ensure they don’t miss out.
$1 billion unclaimed tax refunds: Are you due one?
Normally, taxpayers have three years to file their federal tax return and to claim tax refunds due, if any. After the three years pass, the unclaimed refund money becomes U.S. Treasury Department property. While that is the normal rule, you may have seen that the three years for filing returns and claiming refunds was extended for some federal tax returns because of the pandemic.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Basically, if you haven’t filed your 2021 return, you have until Tax Day 2025 to do so before they lose tax refunds associated with that tax return.
Average Refund Amount of $781
How much money are we talking about? The IRS says that the average median unclaimed refund amount for 2021 is $781. (About half of the refunds are more than that amount and about half are less.)
In terms of who is probably due a refund, the IRS has mentioned students, part-time workers, and others with little income who may overlook filing a tax return and never realize that they may be owed a refund.
Even though the agency has estimated the average refund, the actual amount that you may receive (if you’re due a refund and file your 2021 tax return before the April deadline) will depend on your specific tax situation.
However, the IRS has created state-by-state estimates of how many people might be due refunds. That information also shows the median potential refund and the total potential refunds for each state.
- For example, in California, 1116,300 people have unclaimed IRS refunds at an estimated potential median amount of $600 each. That’s potentially more than $92 million in unclaimed money.
- Some states with relatively high estimated potential median refund amounts are Massachusetts at $936, New York at $995, and Rhode Island at $946.
- In West Virginia, as another example, the IRS estimates that about 4,800 people are due refunds with the total potential refunds for the state being about $4.4 million.
For more information about the number of people who may be due 2021 IRS refunds and the estimated amounts of money involved, visit the IRS website.
Unclaimed IRS Refunds: What Should You Do?
If you think you may have an unclaimed IRS refund, you should review and gather the records needed to file your 2021 federal income tax return by April 15, 2025. That may seem daunting because several years have passed, but the IRS has ways to request key documents and transcripts you may need to file.
For example, if you don’t have a W-2, or other important tax forms from 2021, like a 1099 form, you can request copies from your former employer. Banks, or other payors, for certain tax forms, may be able to help as well.
If your former employers or payors can’t help you, the IRS has a Get Transcript Online tool. The agency also has a way to request a transcript of your wage and income. While, according to the IRS, their online transcript tool is a fast and relatively easy approach, the agency warns that ordering a transcript using a written request can take several weeks.
Note: Keep in mind that even if you are due a refund from 2021, the IRS might hold on to your check if you haven’t filed tax returns for 2022 and 2023. Also, if you owed the IRS or a state tax agency or have unpaid child support or other federal debts, you might not receive your refund money.
Related Content
- IRS is Sending a Million People Up to $1,400: Are You Eligible?
- Tax Season 2025: What to Know Before You File
- IRS Tax Refund Schedule for 2025
-
The AI Doctor Coming to Read Your Test ResultsThe Kiplinger Letter There’s big opportunity for AI tools that analyze CAT scans, MRIs and other medical images. But there are also big challenges that human clinicians and tech companies will have to overcome.
-
The Best Places for LGBTQ People to Retire AbroadLGBTQ people can safely retire abroad, but they must know a country’s laws and level of support — going beyond the usual retirement considerations.
-
Ask the Editor: Taxes, April 11, 2025Ask the Editor In our Ask the Editor series, Joy Taylor, The Kiplinger Tax Letter Editor, answers questions related to IRAs and other retirement accounts.
-
Free IRS Tax Filing for 30 Million People: Will It Continue Under Trump?Tax Filing Direct File was piloted last year in 12 states and has since expanded to 25. But some wonder whether the program will last under the Trump administration.
-
How Caregivers for Adults Can Save on Taxes in 2025Tax Breaks Caring for your parent or spouse can be stressful, but the IRS offers tax breaks for qualifying taxpayers. Here they are.
-
Taxpayer Revolt? Why More People Are Avoiding Filing Taxes This YearTax Season It may be tempting to skip filing due to the overwhelmed IRS, but doing so could have financial and legal consequences.
-
U.S. Treasury to Eliminate Paper Checks: What It Means for Tax Refunds, Social SecurityTreasury President Trump signed an executive order forcing the federal government to phase out paper check disbursements by the fall.
-
IRS Layoffs Spark Delays, Doubt This Tax Season
Tax Season Tax experts say Trump’s downsizing of the IRS is already causing problems.
-
States with the Highest Income Tax Rates for RetireesState Tax You may reconsider living and retiring in one of these states due to high taxes.
-
AI Tax Scams Target Middle and Older Adults: What to KnowScams Whether you’re a retiree or Gen Z, scammers can gouge big financial losses with the help of artificial intelligence.
