IR-2025-46: More than $1 billion in 2021 tax refunds still unclaimed – Taxpayers should act now to see if they are eligible

More than $1 billion in 2021 tax refunds still unclaimed – Taxpayers should act now to see if they are eligible

WASHINGTON ― The Internal Revenue Service today reminded the 1.1 million people who didn’t file their tax year 2021 federal tax returns that they may be eligible for a refund if they file by the April 15 deadline.

The IRS estimates more than $1 billion in refunds remains unclaimed because taxpayers have not filed their 2021 tax returns yet. The state-by-state table below shows how many taxpayers are potentially eligible for these refunds and the average median refund in each state.

There is no penalty for failure to file if a refund is due. However, a return claiming a refund must be filed within three years of its due date for a refund to be allowed. After the expiration of the three-year period, the refund statute generally prevents the issuance of a refund check and the application of any credits, including overpayments of estimated taxes or withholding amounts, to other tax years that are underpaid. If a taxpayer does not file within the three-year window, the money goes to the U.S. Treasury.

It's important to remember that tax year 2021 refunds may be held if taxpayers have not filed returns for 2022 and 2023. In addition, any refund amount for 2021 will be applied to amounts still owed to the IRS or a state tax agency and may be used to offset unpaid child support or other past due federal debts such as student loans.

Taxpayers stand to lose more than just their refund of taxes withheld if they fail to file their 2021 tax return. They could also miss out on money from any refundable tax credits, including the Earned Income Tax Credit (EITC), the Recovery Rebate Credit or other applicable credits.

Many low-to-moderate income workers may be eligible for EITC. For 2021, the EITC was worth as much as $6,728 for taxpayers with qualifying children.

The IRS previously reminded those who may be entitled to the Recovery Rebate Credit in 2021 that time is running out to file a tax return and claim their money. The Recovery Rebate Credit is a refundable credit for individuals who did not receive one or more Economic Impact Payments, also known as stimulus payments, distributed in 2021.

Gathering all the necessary documents and forms to file a return for 2021 may take some time. Taxpayers should start as soon as possible to make sure they have enough time to file before the April 15 deadline for 2021 refunds. Here are some options:

The IRS reminds taxpayers that there is no penalty for claiming a refund on a late-filed tax return. Direct deposit is recommended as the quickest and simplest way to receive a tax refund.

State-by-state estimates of individuals who may be due 2021 income tax refunds

The IRS estimated the number of individuals in each state and the median potential refund a filer may be entitled to receive. The actual refund amount will vary based on a household’s tax situation.

State or district	Estimated number of individuals	Median potential refund	Total potential refunds*
Alabama	18,100	$743	$16,048,100
Alaska	3,600	$832	$3,464,100
Arizona	28,700	$680	$24,284,300
Arkansas	10,200	$709	$8,742,300
California	116,300	$600	$92,299,600
Colorado	19,200	$781	$17,267,500
Connecticut	11,700	$860	$11,092,500
Delaware	4,400	$790	$4,112,700
District of Columbia	2,700	$883	$2,642,900
Florida	69,800	$732	$61,087,200
Georgia	38,500	$720	$33,515,300
Hawaii	5,500	$865	$5,281,800
Idaho	5,500	$649	$4,495,800
Illinois	44,500	$892	$42,482,800
Indiana	25,000	$778	$22,581,300
Iowa	10,900	$797	$9,911,600
Kansas	9,700	$746	$8,640,200
Kentucky	13,800	$747	$12,098,400
Louisiana	17,000	$777	$15,278,200
Maine	4,100	$817	$3,714,100
Maryland	22,900	$837	$21,766,300
Massachusetts	27,000	$936	$26,581,100
Michigan	40,300	$854	$37,301,500
Minnesota	15,900	$670	$13,224,100
Mississippi	9,600	$701	$8,283,600
Missouri	22,900	$722	$19,960,200
Montana	3,600	$679	$3,068,800
Nebraska	5,000	$760	$4,439,000
Nevada	13,700	$783	$12,347,800
New Hampshire	4,800	$833	$4,509,400
New Jersey	31,700	$657	$26,537,500
New Mexico	7,200	$843	$6,569,300
New York	73,000	$995	$72,477,100
North Carolina	35,800	$719	$30,754,100
North Dakota	2,400	$781	$2,147,100
Ohio	39,400	$762	$34,735,100
Oklahoma	15,400	$739	$13,501,500
Oregon	19,300	$772	$16,981,500
Pennsylvania	53,100	$993	$52,121,800
Rhode Island	3,600	$946	$3,487,000
South Carolina	14,400	$683	$12,313,300
South Dakota	2,600	$745	$2,237,700
Tennessee	21,000	$708	$18,085,400
Texas	102,200	$810	$94,792,200
Utah	8,700	$696	$7,553,700
Vermont	2,400	$816	$2,136,900
Virginia	28,500	$749	$25,896,200
Washington	35,200	$880	$33,716,000
West Virginia	4,800	$818	$4,422,800
Wisconsin	14,300	$730	$12,425,300
Wyoming	2,100	$790	$1,922,800
Totals	1,142,000	$781	$1,025,336,800

News Essentials

The Newsroom Topics

IRS Resources

Issue Number: IR-2025-46

Inside This Issue