Nobody like donating money to others, particularly the federal government when it comes to tax refunds (as high as taxes are in America, right?). Alright, here’s excellent news for people who like getting money unexpectedly: The Internal Revenue Service (IRS) revealed that more than 1.1 million US taxpayers had until April 15 to collect about $1.025 billion in refunds for the 2021 tax year.
The government believes that the median number of pending refunds is $781, however numbers vary based on the state and other relevant credits, and some may be several thousand dollars, depending on how much each taxpayer receives, since each situation is unique and unrepeatable.
You should act now to avoid losing your tax refund
Four states have higher unclaimed refund rates than the national average: Massachusetts ($936), Rhode Island ($946), Pennsylvania ($993), and New York ($995). In 2021, individuals may receive up to $1,400 per person or $5,600 for couples with two dependents under the Recovery Rebate Credit. Those who did not get economic stimulation during the epidemic might take advantage of this retroactive benefit
The IRS notes that, in addition to the standard refund, taxpayers may get compensation for the Earned Income Tax Credit (EITC) or other benefits. However, the government will alter any prior stimulus payouts. This year, an extra $1 billion has already been awarded to 1 million persons who failed to claim the credit on previous returns.
Will the government shutdown affect IRS refunds?
Although a potential government shutdown threatened operations in March, the Senate approved funding to keep the IRS operational through September. However, cuts implemented during the Trump administration affected dozens of offices all over the United States. Until mid-March, professionals report processes without significant delays in reimbursements. So you can breathe easy because, if you met the requirements, you will receive your money on the date you estimate.
The federal deadline for the current tax season is April 15, with an extension to October 15. Those who file after the deadline risk fines or loss of refunds. Electronic returns are typically processed in three weeks, while physical returns take four or more, according to the IRS.
Where’s My Refund?
The IRS mobile app and the Where’s My Refund? function enable you to track the progress of your returns. Direct deposit reduces wait times: 90% of refunds are granted within 21 days. As of February 28, the average return was $3,382, 6.3% more than in 2023.
With less than a month before the deadline, the IRS welcomes you to check your eligibility using forms found on its official website, IRS.gov. Volunteer Income Tax Assistance, for example, provides free assistance to persons earning less than $60,000 or who are disabled.