Over 1.1 million taxpayers have yet to claim their refunds for fiscal year 2021, the IRS has warned. All of them add up to more than $1 billion.
Benefits like the Recovery Rebate Credit are included in the average $781 refund per person.
These funds will be transferred to the US Treasury, and those who fail to file their return by April 15, 2025, will forfeit their entitlement to receive them.
Act soon, or you risk losing your IRS refund forever.
Those who did not file must take action before the deadline, even if the company paid out $2.4 billion in automated payments in December 2024 to those who had already filed reports.
Since the credit is refundable, Form 1040 for 2021 must be completed, even if the income was zero or very low.
The US tax laws, which permit a term of three years from the original filing date, serve as the basis for the claim limit.
Experts stress that there won’t be any extensions after April 15. According to the Internal Revenue Code, unclaimed money will go to the national treasury.
The IRS advises opening an online account (/payments/online-account-for-individuals) and examining the status of prior payments in order to expedite the procedure.
Income transcripts and other documents can be requested by contacting 800-908-9946 or utilising Form 4506-T (/forms-pubs/about-form-4506-t). The 2021 forms can be obtained by phone at 800-TAX-FORM or online at /forms-instructions.
Details of the Recovery Rebate Credit
People who did not receive Economic Impact Payments (EIPs) during the epidemic are compensated by the Recovery Rebate Credit.
In 2021, households of four might spend up to $5,600, with the maximum amount being $1,400 for adults, $2,800 for couples, and a further $1,400 for each dependant.
These grants are an essential resource for underprivileged communities because they have no bearing on eligibility for programs like SNAP or SSI.
One million taxpayers received automatic reimbursements in January 2025 after fixing omissions on their forms, according to IRS data.
But now is the time for those who failed to submit any paperwork in 2021. The corporation cautions that the process may get more complicated if receipts like W-2 or 1099 are not collected promptly.
The IRS provides low-income tax clinic access and phone assistance in addition to the online platform.
The agency’s Key Details Summary Table lists the necessary amounts, due dates, and forms. Among the featured resources are:
- Stimulus payment verification via online accounts.
- Forms can be downloaded at /forms-instructions.
- Use /individuals/get-transcript to request salary transcripts.
We stress the importance of the deadline once more before we conclude in order to keep the money from being permanently lost.
It’s time to complete the procedures so that the money doesn’t end up in the hands of the US Treasury; you just have a few hours left.
Source: elmira
