The Internal Revenue Service (IRS) is offering several options for Americans to claim unclaimed tax refunds and credits, with more than 1.1 million individuals having unclaimed refunds from the tax year 2021, totaling over $1 billion. The IRS has set a deadline of April 15, 2025, for taxpayers to file their returns and claim any refunds or credits they may be owed. This effort comes in the wake of Covid-era tax incentives that have mostly expired, which includes the Recovery Rebate Credit—a refundable credit worth up to $1,400.
The IRS typically allows taxpayers to file for a refund or credit within three years after the original filing deadline. For the tax year 2021, this means that Tax Day in 2025 will be the final opportunity for individuals to receive payments they are entitled to. The agency began issuing payments to eligible taxpayers in December 2024 and is automatically sending them to those who qualify.
According to the IRS, more than a million Americans are still eligible for stimulus checks. These checks are part of the Recovery Rebate Credit, designed for individuals who did not receive one or more stimulus payments during the pandemic. This credit remains available only to those who did not file a federal return in 2021. The IRS has emphasized that an additional 1.1 million Americans could benefit by filing their 2021 return by the April 2025 deadline.
The Recovery Rebate Credit is not the only opportunity being offered; many lower- and moderate-income workers could also be missing out on the Earned Income Tax Credit (EITC). The EITC was worth as much as $6,728 for qualifying families in 2021. Taxpayers who did not file in 2021 may be eligible for this credit as well, and the IRS is encouraging them to submit their returns to claim these benefits.
For non-filers from 2021, the median refund amount stands at approximately $781, which represents significant financial relief for many households. The IRS's reminder to claim these refunds and credits is part of an ongoing effort to ensure that eligible taxpayers receive all the benefits they are entitled to.
As a part of its outreach efforts, the IRS has been actively notifying taxpayers of their potential eligibility through reminders and automatic payments. This initiative aims to ensure that no eligible taxpayer misses out on receiving their entitled refunds or credits.