Many people in the US are about to miss out on free money from the government. The IRS has said that over $1 billion in unclaimed tax refunds from 2021 are still waiting. If you didn’t file your taxes for that year, you might be one of the nearly 1 million people who could lose this money forever.
The deadline to claim your 2021 tax refund is April 15, 2025. After this date, the government will keep the money, and you won’t be able to get it back.
Why You Need to Act Quickly
According to US law, people have three years to file their tax return and claim a refund. For the 2021 tax year, that three-year window is about to close. If you don’t file by April 15, 2025, the money will be gone.
On average, the IRS says people could be missing out on $780 each. That’s not a small amount!
The good news is: if the IRS owes you money, there’s no penalty for filing late. But if you don’t act, you’ll lose your refund — and maybe even more.
You Might Also Be Missing the 2021 Stimulus Credit
If you didn’t get your third stimulus payment during COVID-19, you can still claim it through something called the Recovery Rebate Credit. You can only get this money by filing your 2021 tax return.
Single people could get up to $1,400, couples up to $2,800, and families of four could get as much as $5,600. This is in addition to your tax refund — but you’ll lose it all if you don’t file in time.
What You Need to File a Late Tax Return
To file your 2021 return, you’ll need documents like W-2s or 1099s that show your income. If you don’t have them, don’t worry — the IRS can help. You can use your IRS.gov account to view your income records or order tax transcripts. But if you want physical copies, it might take a few weeks.
That’s why the IRS suggests using the digital options first to save time.
Can You Use Online Tax Software?
Most online tax websites don’t allow you to file past returns online. Instead, you’ll need to buy the 2021 desktop version of the tax software, fill it out on your computer, and then print and mail your return to the IRS.
This takes time, especially if you’re still gathering old income details from past employers.
Tax Services That Can Help
Many tax companies are offering help with late tax returns. You can go to:
H&R Block, Liberty Tax, or Jackson Hewitt – These have in-person and online services.
Tax Act – A cheaper option for software.
IRS Free File Program – Good for people with lower incomes.
Remember, no one can e-file a late 2021 tax return. You must print and mail it.
Some companies also help recover lost tax documents, but wait times can differ depending on your case.
Helpful Tips to Avoid Mistakes
Start your tax filing as early as you can. Here’s what the IRS recommends:
- Check your mailing address
- Look at your bank statements
- Contact your old employers if needed
These steps help prevent mistakes that could delay your refund. If you’re still waiting on documents, you can ask for an extension — but it won’t extend the April 15, 2025 refund deadline.