More than a million Americans are sitting on money they don’t even know is theirs – and if they don’t act fast, they’ll lose it forever, as IRS is set to seize unclaimed refunds after April 15, 2025.
According to the IRS, over 1.1 million people are still eligible to claim their 2021 tax refunds, which collectively add up to a jaw-dropping $1 billion in unclaimed cash. The median refund? $781.
But here’s the kicker – if these taxpayers don’t file their 2021 federal return by April 15, 2025, that money gets forfeited to the U.S. Treasury. Yep, the government keeps it.
This isn’t a glitch or a giveaway. These are legitimate refunds that belong to people who, for one reason or another, never filed their 2021 taxes. Maybe they didn’t earn enough to be required to file, maybe life got in the way – but now they’re leaving real money on the table.
Who’s eligible?
To claim the cash, you must:
- File your 2021 federal tax return by April 15, 2025
- Be current on 2022 and 2023 filings
- Not owe money to the IRS or other federal/state agencies (because your refund can be offset for things like unpaid taxes, child support, or student loans)
This isn’t a free-for-all. The IRS will check to see if you’re up to date with recent returns, and it will definitely deduct any debts before handing over your refund. But for most, this is still a huge opportunity to get hundreds – or even thousands – of dollars back.
How to claim it
It’s simple: file your 2021 tax return using an IRS-approved method. That could be with a tax pro, online software, or by mailing in a paper return. The IRS even has free filing tools for eligible users through its Free File program.
You can’t claim the refund through a current-year tax return. It has to be a 2021 return, properly filed, and on time.
Don’t wait
The IRS doesn’t offer extensions on these types of refunds. The April 15, 2025 deadline is hard and final. Once it passes, the money’s gone. And with the clock ticking, now is the time to act.
A reminder: these refunds won’t include interest, and they might be offset – but whatever’s left is yours. If you’re eligible and don’t claim it, that’s just free money you’ll never see.
