IRS Warns of $94.7 Million in Unclaimed Refunds in This State: The IRS warns of $94.7 million in unclaimed refunds in Texas, urging taxpayers to take swift action before the window to claim their money closes. If you haven’t filed your 2021 federal income tax return, you could be one of the 102,200 Texans who are missing out on a median refund of $810. The deadline to file and claim these refunds is April 15, 2025—a date that might feel far off, but in tax terms, it’s right around the corner.
Every year, billions of dollars are left unclaimed, and in many cases, it’s simply because individuals didn’t file a return. Whether due to confusion, life challenges, or assuming they didn’t earn enough to qualify, thousands of people are unknowingly walking away from money they’re entitled to. This year, the Internal Revenue Service is sounding the alarm early to give people time to gather their documents, file, and collect what’s theirs.
IRS Warns of $94.7 Million in Unclaimed Refunds in This State
| Topic | Details |
|---|---|
| Total Unclaimed Refunds (U.S.) | Over $1 billion |
| Total Unclaimed in Texas | $94.7 million |
| Estimated Affected Texans | 102,200 individuals |
| Median Refund Amount | $810 |
| Tax Year in Question | 2021 |
| Filing Deadline | April 15, 2025 |
| Eligible Tax Credits | Earned Income Tax Credit (up to $6,728) |
| Source | IRS Official Website |
This is more than just a bureaucratic announcement—it’s a financial opportunity. With over $94 million in unclaimed refunds waiting in Texas alone, many residents have a chance to recover money they may have forgotten about.
Why Are These Refunds Unclaimed?
Tax refunds often go unclaimed for simple, but avoidable reasons. People might assume they don’t qualify if their income was too low, or they may not know they need to file a return to get a refund. Others misplace their income documents, or face life challenges—such as illness, unemployment, or natural disasters—that push tax filing to the back burner.
Another overlooked scenario is students or part-time workers who earned some income but didn’t think it was enough to matter. Yet, these groups frequently qualify for refunds and valuable tax credits. With just a little time and effort, that money could be recovered.
The IRS holds these funds for three years, and once that time passes, the money is no longer yours to claim—it legally becomes property of the U.S. Treasury. For 2021 returns, this three-year clock ends April 15, 2025.
How Much Money Is at Stake?
Nationwide, the IRS reports that over $1 billion in refunds from tax year 2021 remain unclaimed. The state of Texas alone accounts for $94.7 million, owed to more than 102,000 individuals. The median refund of $810 may not seem life-changing, but it’s a significant amount that could cover a car repair, medical bills, groceries, or debt repayment.
Even more compelling, many eligible filers may also qualify for the Earned Income Tax Credit (EITC), a major benefit designed to boost earnings for low-to-moderate income workers. Depending on your situation, the EITC could be worth up to $6,728 for the 2021 tax year.
This is money you earned. Don’t let it slip away.
How to Claiming Your Refund
Filing a past-year tax return may seem daunting, but it’s actually straightforward when broken into steps:
Step 1: Gather Your Documents
You’ll need income-related documents from 2021, including W-2s, 1099s, and any additional records showing earnings or withholdings. If you no longer have these papers, reach out to your employer or bank, or use the IRS Get Transcript tool to access your past wage and income records: Get Transcript Online.
Step 2: Download IRS Form 1040 for 2021
Visit the IRS forms archive and download the 2021 Form 1040. Prior-year returns must be mailed in—they cannot be submitted electronically.
Step 3: Complete and Mail the Return
Carefully fill out your form and double-check your figures. Mail your return to the address listed for your region in the instructions. You must postmark it on or before April 15, 2025 for it to be accepted.
Step 4: Track Your Refund
Once your return has been received and processed, you can check the status using the “Where’s My Refund?” tool. You’ll need your Social Security number, filing status, and the exact amount of your refund.
Optional: Seek Help from a Professional
If you’re unsure how to proceed or need help claiming credits like the EITC, consider reaching out to a certified tax preparer or visiting a Volunteer Income Tax Assistance (VITA) center.
What Is the Earned Income Tax Credit (EITC)?
The Earned Income Tax Credit is one of the most beneficial, yet underclaimed, tax credits available. Designed for workers who earn a modest income, it can significantly increase your refund—even if you owe nothing in taxes.
Here’s a breakdown of the 2021 EITC amounts:
| Number of Qualifying Children | Max EITC (2021) |
|---|---|
| 0 | $1,502 |
| 1 | $3,618 |
| 2 | $5,980 |
| 3 or more | $6,728 |
Eligibility depends on your earned income, filing status, and the number of qualifying children. To learn more and see if you qualify, visit the IRS EITC information page.
Common Mistakes to Avoid
Filing an old tax return isn’t hard, but small mistakes can delay or even cancel your refund. Watch out for these common errors:
- Incorrect or outdated mailing address – Use your current and correct address.
- Missing signatures – Your return must be signed to be processed.
- Wrong Social Security numbers – Double-check every digit.
- Not including all income forms – Attach copies of W-2s and 1099s.
- Math mistakes – Even a simple addition error can cause delays.
- Filing too late – If your return is late, the refund is forfeited.
Use tax software or a professional to reduce errors and ensure accuracy.
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FAQs About IRS Warns of $94.7 Million in Unclaimed Refunds in This State
Who is eligible to claim a 2021 refund?
Anyone who earned income in 2021 and didn’t file a federal return may be eligible. This includes students, part-time workers, retirees, and gig economy workers.
Can I still claim state tax refunds?
This article focuses on federal refunds. State refund deadlines vary, so visit your state’s tax website for details.
What if I can’t find my 2021 tax forms?
Use the IRS Get Transcript tool to access your wage and income transcripts for 2021. Employers may also be able to reissue missing forms.
Do I have to pay anything to file?
No, you can file prior-year returns for free by mailing them in. Be cautious of paid services that charge hidden fees.
What happens if I file after the April 15, 2025 deadline?
Unfortunately, you will lose the refund. After three years, unclaimed refunds legally belong to the U.S. Treasury.
Can I claim the EITC even if I had no kids?
Yes. While the credit is larger for people with children, workers without children can also qualify depending on their income and filing status.
