
Forget worrying about filing your 2024 taxes by the end of today; the real question is, did you file for a refund in 2021?
The IRS estimates more than $1 billion in refunds remains unclaimed because taxpayers didn’t file a 2021 tax return, according to a release. In Washington state alone, the agency says that more than 35,000 have yet to claim an estimated $33.7 million in unclaimed refunds from the 2021 tax year, with the median refund being $880.
While taxpayers are not required to file if they are owed a refund, they can only claim that refund for up to three years after its due date. 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.