Every year, millions of Americans unknowingly leave money on the table by failing to file tax returns—and the IRS is still accepting late filings for previous years. For the 2021 tax year alone, the IRS estimates that over 1.1 million taxpayers have unclaimed refunds worth a combined total of more than $1 billion. With an average refund of $781 per person, this is a significant missed opportunity—especially in today’s economy.
But there’s a deadline fast approaching. Taxpayers have until April 15, 2025, to file their 2021 tax returns and claim any refund they’re owed. After that, the money becomes federal property and cannot be claimed.
IRS Still Sending Stimulus and Tax-Related Refunds
While most people associate stimulus checks with earlier pandemic years, the IRS is still distributing payments and tax credits from those periods, including the Recovery Rebate Credit and the Earned Income Tax Credit (EITC). These could significantly increase the amount owed to qualifying taxpayers.
If you didn’t receive the full amount of your stimulus checks or qualified for the EITC but didn’t claim it, filing your 2021 return could lead to even more money in your pocket.
How to File a 2021 Tax Return Before the Deadline
If you haven’t yet filed your 2021 return, the good news is—it’s not too late. Here’s how to get started:
1. Gather Your Tax Documents
Start by collecting all relevant forms for 2021. These may include:
| Form | Purpose |
|---|---|
| W-2 | Wage income from employers |
| 1099 | Freelance or contract work, interest, dividends |
| 1098 | Mortgage interest or student loan interest |
| 5498 | IRA contributions and rollovers |
If you’re missing these forms, contact your employer, bank, or other institutions that issued them.
2. Use IRS Online Tools
The IRS offers several digital resources to help locate past tax data:
- IRS Individual Online Account: View past transcripts, balance due, and other personal tax info.
- Get Transcript Tool: Order past return summaries by mail or online.
- Form 4506-T: Request a detailed record of income for a specific year.
3. File Electronically or by Mail
You can file a late return electronically using most tax software, or download and print IRS Form 1040 for 2021 and mail it in. Just make sure the IRS receives it by April 15, 2025.
Potential Issues That Can Impact Your Refund
While most people will receive their full refund, some may face delays or reductions due to:
- Outstanding federal or state debt: Refunds may be offset to pay child support, student loans, or past taxes.
- Missing tax returns from 2022 or 2023: If you haven’t filed returns for later years, the IRS may hold your 2021 refund until you’re up to date.
- IRS processing delays: Submitting early gives you more time to resolve any issues that may arise.
Why Filing Now Is Critical
The IRS strongly urges taxpayers to act now rather than wait. Filing late returns often involves requesting documents, verifying information, and potentially resolving discrepancies—all of which take time. Procrastination increases the risk of missing the deadline, which could cost you hundreds or even thousands of dollars.
Plus, filing now can also prevent problems with future returns or IRS correspondence. In some cases, getting current on your tax filings may help you avoid penalties or interest down the road.
Don’t Miss Out on Your Money
For millions of Americans, the clock is ticking. With over $1 billion in unclaimed refunds from 2021, filing now could make a serious difference in your finances. Even if your income was low or you didn’t think you needed to file, it’s worth checking—you may still be entitled to credits or refunds.
FAQs:
1. Can I still get a stimulus check from 2021?
Yes. If you didn’t receive your full stimulus payment, you can claim the Recovery Rebate Credit by filing a 2021 return.
2. What if I didn’t make much money in 2021?
Even low-income individuals may qualify for refunds or tax credits like the Earned Income Tax Credit (EITC). Filing is the only way to find out.
3. Do I need to pay a penalty for filing late?
If you’re owed a refund, there’s no penalty for filing late—but you must file by April 15, 2025, to get it.
