Millions of Americans Are Missing This Simple Tax Break — Are You?

As the July 15 national tax deadline approaches, the US Internal Revenue Service (IRS) has issued a warning that taxpayers could lose out on an average of $946 in unclaimed tax refunds if they don’t act quickly. This amount can be available for free—provided you file your 2021 tax return on time. If you miss it, this amount will go to the US treasury forever.

Why have millions of Americans not claimed their 2021 tax refund yet?

The IRS estimates about 1.1 million of the US taxpayers have not responded to their 2021 federal income tax return. The agency estimates that over a billion dollars of this year is yet to be claimed-sitting unclaimed still. Unless before June 15, 2025, it is settled, the money will belong to the U.S. government.

This situation is shocking, because this is an opportunity for people to get their own money back without doing any extra work. In some states like Rhode Island, the average refund amount reaches $946, which is higher than the national average of $781.

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Which states have the highest amount of unclaimed tax refunds?

The IRS also revealed that there are some states where large amounts of tax refunds are still waiting to be claimed:

• California: Nearly $92 million in unclaimed refunds
• Michigan: More than $37 million still pending
• Rhode Island: Nearly $3.5 million for 3,600 people

As of March 11, 2025, the IRS reported that a total of $1,025,336,800 is still unclaimed—which could become an economic opportunity for the entire US.

What happens if you don’t file your 2021 return by July 15?

Tax refund has a time limit of three years in the US laws. With the 2021 tax year this will run out at July 15, 2025. Any claims after this date will not be accepted.

Also, the IRS will allocate your refund of 2021 to past due debts, such as taxes if you had not paid taxes of 2022 or 2023 or any federal obligations, including child support and student loans.

What tax credits can increase your 2021 refund amount?

Not just the basic refund, some special tax credits can help you get more money:

1. Recovery Rebate Credit

In case you did not receive a stimulus check when they were issued during the COVID 19 pandemia, you are not too late to claim it. That is why, in December 2024, the IRS will automatically pay you 2.4 billion dollars, but provided that you have not yet submitted a 2021 declaration, you will need it.

2. Earned Income Tax Credit (EITC)

This credit is in the range of \$6,728 given the size of its family and earnings. In 2021, the limit of the EITC income varied as follows:

• With three or more children: $51,464 ($57,414 for married)
• With two children: $47,915 ($53,865 for married)
• With one child: $42,158 ($48,108 for married)
• No children: $21,430 ($27,380 for married)

If you fall within these criteria, filing a return could provide additional help of hundreds to thousands of dollars.

Can you still file a return after July 15?

The IRS allows an extension to Oct. 15 to these people by submitting form 4868. This is an automatic extension which can be obtained by the following manner: e-filing in the IRS site, hire a tax professional or mail the form. Remember, however, this only gives you more time to file, not pay. In case you have not paid your taxes or have a tax liability, it should be paid on July 15-otherwise you may be charged a penalty. —How long is the refunding process? According to the IRS, those who e-file and direct deposit are expected to get their refund within 21 days. In the case of paper returns by mail, it may take a month or more; particularly, when millions of individuals are doing last minute filing.

There has been an average refund sum of \$1,928 per capita in the year up to date in 2025 with those using direct deposit receiving an amount up to \$2,069. This implies that your submission in 2021 with some added tax credits may be a huge difference in your finances.

The status of your refund may be followed **within 24 hours (in case e-filing was done) and within four weeks (in case filed through the mail) via the Where My Refund page of the IRS. tool.

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Conclusion: Don’t lose your money, act now

More than $1 billion from the 2021 tax year is still yet to be claimed. This is a golden opportunity that any common man would be willing to miss. Even if you think you are not eligible—just double check.

The IRS says this money is not the government’s right, but the right of taxpayers—but only those who claim it on time.

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