April 15 Deadline Looms For 2021 Tax Refunds
The Internal Revenue Service (IRS) has announced that over 1.1 million individuals nationwide are eligible for unclaimed tax refunds from the 2021 tax year, totaling more than $1 billion. Taxpayers must file their 2021 tax returns by April 15th to claim these funds.
The IRS estimates the median refund amount to be $781, meaning half of the eligible refunds are higher, and half are lower. This estimate excludes potential Recovery Rebate Credits and other applicable credits.
Time is Running Out On 2021 Tax Refunds
- Taxpayers have a three-year window to claim refunds. After this period, the unclaimed funds revert to the U.S. Treasury.
- Missing the deadline means losing not only the refund of withheld or paid taxes but also potential eligibility for the Earned Income Tax Credit (EITC).
Significant EITC Opportunities:
Many low- and moderate-income workers may qualify for the EITC, which for 2021, could be as high as $6,728 for those with qualifying children. Income thresholds for the 2021 EITC were:
- $51,464 ($57,414 if married filing jointly) for three or more qualifying children.
- $47,915 ($53,865 if married filing jointly) for two qualifying children.
- $42,158 ($48,108 if married filing jointly) for one qualifying child.
- $21,430 ($27,380 if married filing jointly) for those without qualifying children.
Important Considerations:
- Refunds may be held if 2022 and 2023 tax returns remain unfiled.
- Refunds will be applied to outstanding IRS or state tax debts, unpaid child support, or other federal debts like student loans.
- State by state data of potentially eligible people and median refund amounts are available.
Obtaining Necessary Documents
The IRS urges taxpayers to act quickly to gather necessary documents. Options include:
- IRS Individual Online Account: Access tax records, transcripts, and wage/income statements at IRS.gov.
- Requesting copies: Obtain W-2s, 1098s, 1099s, or 5498s from employers, banks, or payers.
- Get Transcript by Mail: Request mailed transcripts via IRS.gov or by calling 800-908-9946.
- Wage and Income Transcript: File Form 4506-T with the IRS, but allow several weeks for processing.
Resources:
- Tax forms and instructions: IRS.gov or 800-TAX-FORM (800-829-3676).
State by state data can be found on the IRS website.