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The Internal Revenue Service (IRS) announced this week that more than 1 million taxpayers have filed their tax returns and are using up time to receive unclaimed tax refunds since 2021.
In a release Tuesday, the IRS said more than 1.1 million taxpayers have been requested for tax returns that have not been requested for their 2021 tax returns, and have filed their tax returns in the face of the looming April 15 deadline. The IRS estimated that more than $1 billion in tax refunds remain unclaimed by taxpayers who have not filed a federal tax return known as Form 1040 in the 2021 tax year.
The IRS analyzed unclaimed refunds and estimated the median 2021 refunds to be $781. That is, we estimate that half of the refunds are over $781, with half being less. The estimate does not include recovery rebate credits or other credits that may apply to certain tax returns.
Taxpayers typically have three years to file their tax returns and request a tax refund by law, and if they do not meet that deadline within three years, the unclaimed refund will become the property of the US Treasury Department.
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The IRS has warned taxpayers to file their 2021 tax year return by April 15th to avoid losing their refunds. (Tasos Katopodis/Getty Images) /Getty Images)
“By missing out on filing your tax returns, people will lose more than a refund of taxes they withhold or paid in 2021,” the IRS writes.
“Many low- and middle-income workers may qualify for the Earned Income Tax Credit (EITC). In 2021, the EITC was worth $6,728 for taxpayers with qualified children,” the agency added.
EITCs have different graded thresholds depending on income and family size. The 2021 IRS EITC threshold was $51,464 for taxpayers with three or more eligible children. $47,915 for a filer with two qualified children. $42,158 for those with qualified children. $21,430 for a qualified childless filer.
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Taxpayers who are eligible for the earned income tax credit will miss out if they do not file their tax returns. (Kayla Bartkowski / Getty Images) / Getty Images)
Additionally, the IRS said it has announced that taxpayers seeking a 2021 tax refund could potentially make a refund if they have not filed their tax returns in 2021 and 2023.
The IRS points out that there are ways to get information needed for past taxes, like in 2021, but collecting tax documents from the previous year to file delayed returns can be difficult.
IRS Website Individual online accounts Taxpayers can have access to past tax returns, tax revenue information, wage and profit statements, and transcripts of validation of non-filing letters.
The agency points out that taxpayers who are missing Form W-2, 1098, 1099, or 5498 can request copies from their employer, bank or other payer. Taxpayers who are unable to retrieve the missing form and cannot access individual online accounts on the website, Get transcripts via email Calling a feature or automatic phone transcript service.
Taxpayers have access to tax forms through the IRS for the past few years. (Getty Images/Daniel Acker via Getty Images/Bloomberg)
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Another option is for the taxpayer to submit Form 4506-T to request a wage and income transcript. However, these requests can take several weeks and the IRS recommends taxpayers try other options first.
Taxpayers who are about to file taxes from the previous year, such as 2021, can access the appropriate version of Form 1040 from the year required on the IRS website. Forms and instructions Please call the page or the agent's toll free line 800 tax (800-829-3676).
