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1.1 million Americans must claim $1 billion in tax refunds, or lose the money forever

If you don't claim your tax refunds before the deadline, the money will be collected by the Treasury and will never come back

by Carlos Benavides
31/03/2025 17:00
in Money
$1 billion in unclaimed tax refunds: request your money NOW

$1 billion in unclaimed tax refunds: request your money NOW

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Once again, the Internal Revenue Service (IRS) reported that April 15, 2025 is the final date to claim stimulus checks not received during the Covid-19 pandemic era, when the federal government sent out millions of dollars in stimulus checks.

Approximately 1.1 million people in the US have that day as the final date (non-postponable) to file tax returns for the 2021 tax year and request refunds that were pending. The agency believes that more than $1 billion is up for distribution and, if not claimed, will become the property of the United States Treasury.

“Under the law, taxpayers typically have three years to file and claim their tax refunds,” the IRS said in a recent statement in which it again urged taxpayers to claim the money.

Eligibility and process to receive that 2021 tax refund: $1,000 million to distribute

The process requires submitting the 2021 return before the deadline. Those who do not do so will lose the funds permanently. The IRS recommends using updated forms and checking its portal to see if there are any pending payments.

Unclaimed refunds include credits such as the Earned Income Tax Credit (EITC) and the Child Tax Credit, in addition to the stimulus checks authorized during the pandemic. People who did not file returns in 2021, especially those with low income or not required to file, may be eligible.

The United States Internal Revenue Code establishes a three-year deadline to claim tax refunds. After that period, the federal government transfers unclaimed revenues to the Treasury and then they can no longer be claimed and the Federal Reserve will dispose of that money freely.

This limit mainly affects residents who failed to declare in 2021 due to ignorance or errors. Tax defense groups have increased information campaigns to alert potential beneficiaries.

Recommendations for unclaimed 202 tax refund applicants

The IRS suggests collecting documents such as W-2, 1098, or 1099 for 2021 before filing. Those who do not have these records can request them from employers or educational institutions, or use the “Get Transcript Online” tool on the agency’s website.

Those who submit this request after April 15, 2025 will not receive refunds, but it is recommended that tax returns be submitted themselves to avoid subsequent fines or audits. Analysts point out that those affected by the expiration tend to be low-income people, informal workers or those who faced changes of address. In 2021, about 5% of eligible households did not claim their checks, according to Treasury data.

Tags: IRSTax

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