Last Chance to Claim Tax Year 2021 Refunds
The IRS has announced that the 1.1 million taxpayers who have unclaimed tax refunds for tax year 2021 have until April 15, 2025 to submit their returns. It is estimated that more than $1 billion in refunds is as yet unclaimed, with a median refund of $781.
Generally under the law, taxpayers have a three-year window in which to file and claim refunds. But it’s not just refunds at stake; the refund estimates don’t include the Recovery Rebate Credit or other credits that may still be applicable. Low and moderate income workers may also be eligible for the Earned Income Tax Credit (EITC), which was worth as much as $6,728 in 2021. This credit helps individuals and families who have incomes below a certain threshold. Those limits in 2021 were:
- $51,464 ($57,414 if married filing jointly) for those with three or more qualifying children
- $47,915 ($53,865 if married filing jointly) for people with two qualifying children
- $42,158 ($48,108 if married filing jointly) for those with one qualifying child
- $21,430 ($27,380 if married filing jointly) for people without qualifying children.
As a reminder, your 2021 tax refund may be held if you haven’t filed tax returns for 2022 and 2023, so it’s important to take care of those items. Also, any potential refund will be applied to outstanding amounts owed to the IRS or state agencies and could be used to offset other debts, such as unpaid child support or student loans.
The IRS has estimated how many people in each state may be entitled to a refund (the actual amount, however, will be based on your individual tax situation), including:
- New Jersey: 31,700 estimated taxpayers ($26,537,500 in total potential refunds, with a median refund of $657)
- New York: 73,000 estimated taxpayers ($72,477,100 in total potential refunds, with a median refund of $995)
- Pennsylvania: 53,100 estimated taxpayers ($52,121,800 in total potential refunds, with a median refund of $993)
Contact Us
If you have questions about the information outlined above or need assistance with another tax or accounting issue, Klatzkin can help. For additional information call 609-890-9189 or click here to contact us. We look forward to speaking with you soon.