More than one million Americans have missed out on their 2021 tax refunds — and with the April 15, 2025 deadline now passed, those unclaimed funds are officially out of reach. According to the Internal Revenue Service (IRS), roughly $1.1 billion in refunds were still unclaimed earlier this year, waiting for taxpayers who never filed returns for the 2021 tax year.
Taxpayers had until April 15, 2025 — three years from the original 2021 filing deadline — to file and claim these funds. After that date, federal law requires that the unclaimed money becomes the permanent property of the U.S. Treasury.
So what does this mean for those who missed the deadline? And is there anything that can still be done?
Who Missed Out — And Why It Matters
The IRS estimated that the median potential refund was $932 for 2021. That means more than a million households missed out on hundreds — or even thousands — of dollars in owed refunds. In some cases, individuals could have claimed even more if they qualified for tax credits or missed out on the third round of COVID-19 stimulus payments.
Notably, taxpayers who didn’t receive the full third Economic Impact Payment (EIP) could claim the 2021 Recovery Rebate Credit, which was worth up to $1,400 per person. To get it, they had to file a 2021 return — even if they weren’t normally required to do so due to low income.
The IRS reminded eligible filers: “There’s no penalty for filing a late return if a refund is due.” However, once the three-year deadline passes, the right to claim the money vanishes.
Why Millions Didn’t File
Many who failed to file returns were low-income earners, students, part-time workers, or elderly Americans who mistakenly believed they weren’t required to file because their earnings were below the IRS filing threshold. However, even if no taxes were owed, filing could have triggered a significant refund.
In an earlier statement by the IRS, Commissioner Danny Werfel emphasized, “People faced extremely unusual situations during the pandemic, which may have led them to forget or ignore the requirement to file a tax return.
What If You Missed the Deadline?
If you missed the April 15, 2025 deadline for filing your 2021 return, unfortunately, there is no way to claim that refund anymore.
However, you still have time to file your 2022 and 2023 returns if you haven’t already. Here’s what you can do:
- File Now for 2022 and 2023: Visit IRS Free File if your income is below a certain threshold. It provides free federal filing options through trusted providers.
- Claim Credits: Even if you aren’t eligible for a refund from 2021, filing 2022 and 2023 returns could qualify you for the Earned Income Tax Credit (EITC) or Child Tax Credit (CTC). These programs offer thousands in refundable credits even if no taxes are owed.
- Consult a Tax Professional: Consider reaching out to a certified tax preparer or IRS-certified volunteer through the VITA or TCE programs.
Avoid Missing Future Refunds
To ensure you never miss another refund deadline:
- File every year, even if you think you don’t owe.
- Update your address and direct deposit info with the IRS regularly.
- Use the IRS Online Account system to check your filing history and refund status: https://www.irs.gov/payments/your-online-account
Final Thoughts
The loss of over $1 billion in refunds is a stark reminder of how important it is to stay on top of tax deadlines — especially when there’s no penalty for late filing if a refund is due. While the window to claim 2021 refunds has closed, proactive taxpayers can still recover refunds for 2022 and beyond.
This article has been carefully fact-checked by our editorial team to ensure accuracy and eliminate any misleading information. We are committed to maintaining the highest standards of integrity in our content.
