Did you know that over 1.1 million taxpayers still haven’t claimed their 2021 tax refunds? The IRS estimates that more than $1 billion remains unclaimed, with a median refund of $781. But here’s the catch: the deadline to file and claim your 2021 refund is April 15, 2025.
Miss it, and your refund becomes the property of the US Treasury. Read this article, to learn how to claim your old tax refund before it’s too late.
What Happens If You Haven’t Claimed Your 2021 Tax Refund?
Right now, the Internal Revenue Service (IRS) has over $1 billion in unclaimed tax refunds for the tax year 2021.
Here’s why this matters:
- 1.1 million taxpayers still need to file their 2021 tax returns to claim their potential refund.
- Many of these unclaimed refunds include credits like the Earned Income Tax Credit (EITC) and the Recovery Rebate Credit, which could significantly boost your refund check.
- If you had taxes withheld from your paycheck in 2021 or were eligible for stimulus checks, you may be entitled to a refund.
What Happens If You Miss the April 15, 2025 Deadline?
If you don’t file your 2021 tax return by April 15, 2025, you lose your refund forever. Under IRS rules, you have three years to claim old refunds. After that, the money goes to the US Treasury.
If you miss the three-year window, here’s what happens:
- Your refund is gone permanently—you can’t file later to get it back.
- Any tax credits, including the EITC and Recovery Rebate Credit, will also be lost.
- If you had state tax withheld, you might still be able to claim a refund from your state tax agency, but deadlines vary by state.
If you were affected by COVID-19 and missed filing, you may be eligible for additional tax relief. The deadline is fast approaching, so don’t wait!
Further Reading: Track your tax refund status
Do You Qualify for an Unclaimed Tax Refund for 2021?
What Are the Eligibility Requirements for a 2021 Refund?
You may be due a refund if you:
- Had wages or self-employment income in 2021 and had taxes withheld from your paycheck.
- Didn’t file a return because you thought you didn’t earn enough, but you actually qualify for a refund.
- Were eligible for tax credits, including the Earned Income Tax Credit (EITC) or the Recovery Rebate Credit, but didn’t claim them.
- Had unusual situations like working part-time, receiving a 1099, or missing tax forms.
- Were a student or gig worker who earned income but didn’t file because you assumed you weren’t required to.
Even if you owe nothing, you could still qualify for a refund check.
Are You Eligible for the Earned Income Tax Credit (EITC)?
The Earned Income Tax Credit (EITC) is worth as much as $6,728 for tax year 2021. If you meet the income limits below, you may be eligible for a refund:
Maximum EITC amounts for tax year 2021:
- $6,728 – Three or more qualifying children
- $5,980 – Two children
- $3,618 – One child
- $1,502 – No children
Income Limits for EITC (2021):
- $51,464 ($57,414 if married filing jointly) – Three or more children
- $47,915 ($53,865 if married filing jointly) – Two children
- $42,158 ($48,108 if married filing jointly) – One child
- $21,430 ($27,380 if married filing jointly) – No children
Further Reading: Find out how long it takes to get your tax refund
How to Claim Your Old Tax Refund Before the 2025 Deadline
What Steps Do You Need to File a Late 2021 Tax Return?
If you haven’t filed 2021 tax returns, here’s what you need to do before April 15, 2025:
1. Gather Your Income Documents
- Locate your W-2s, 1099s, or other income forms from 2021.
- If you lost them, request copies from your payer, employer, or bank.
2. Check for Missing Forms
- Can’t find your W-2 or 1099? Use the IRS Get Transcript tool at IRS.gov to request a free wage and income transcript.
- If that doesn’t work, submit Form 4506-T to the IRS to get official records.
3. Download IRS Forms
- Get Form 1040 for tax year 2021 from IRS.gov.
4. Claim Tax Credits
Make sure to claim all eligible tax credits, including:
- Earned Income Tax Credit (EITC)
- Recovery Rebate Credit (for missed stimulus checks)
- Child Tax Credit
5. File Before April 15, 2025
- Mail your prior-year tax return to the IRS before the deadline.
- You may need to file a state tax return separately if you had state tax withheld.
Can You Use IRS Tools to Track Your 2021 Refund?
After you file, check the status of your potential refund using:
IRS Refund Lookup ("Where’s My Refund?") – Available on IRS.gov.
IRS Online Account – View your prior year tax history and payments.
IRS Automated Phone Line – Call 800-829-1954 to check refund status.
If you filed 2020 tax returns late and are still waiting for refunds from 2020, you can use these tools to track those as well.
Further Reading: Examine reasons that could delay your tax refund
What If You Owe Taxes from Other Years?
Will Your 2021 Refund Be Applied to Other Debts?
If you owe past due taxes from 2022 or other years, the IRS may hold your 2021 refund. Your refund could also be used to pay:
- Unpaid child support
- Federal student loans
- Back state taxes owed to an IRS or a state tax agency
Before you expect a refund check, check your tax situation to see if your refund will be applied to unpaid debts.
How Can You Minimize Tax Debt and Penalties?
If you owe taxes, don’t ignore them—interest and penalties add up fast. Here’s how to handle it before it becomes a bigger problem:
- Set Up a Payment Plan – The IRS offers installment agreements to help you pay over time.
- Request Penalty Relief – If you qualify for reasonable cause relief, you may have penalties removed.
- Check for Tax Credits – If you didn’t claim credits in prior years, you might be able to reduce what you owe.
If you’re unsure how to settle your tax debt, a tax professional can help negotiate with the IRS or a state tax agency.
Key Takeaways
- Over $1 billion in unclaimed refunds from the 2021 tax year are still available, but you must file a return to claim your money.
- The deadline to file for your 2021 refund is April 15, 2025—miss it, and your refund becomes property of the U.S. Treasury.
- You may be eligible for tax credits like the Earned Income Tax Credit (EITC) or Recovery Rebate Credit, increasing your potential refund.
- Use IRS tools like Get Transcript and Where’s My Refund to check your tax situation, find missing forms, and track your refund check.
- Taxfyle connects you with tax professionals to help you file your tax return, claim old refunds, and avoid missing out on money you’re owed.
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