$1 Billion in Tax Refund Money Disappears Today. Here's How to Claim Your Piece

Almost 1 million people are about to lose their tax refunds from 2021 simply because they didn't file a tax return. According to the IRS, more than 1.1 million taxpayers across the nation have unclaimed refunds for tax year 2021, and they have until end of day today -- Tax Day -- to do claim their money before losing it forever. 

If you're one of the many taxpayers who never claimed their 2021 refund, you only have a few hours left to act. By law, the IRS keeps these unclaimed tax refunds for three years. After April 15, the agency transfers the money to the US Treasury.

It's important to note, though, that taxpayers seeking a 2021 tax refund may have refunds held if you have not filed tax returns for 2022 and 2023. Below, we break down how to claim your 2021 tax refund, including what to do if you're missing old forms. 

For more tax tips, explore how to file taxes free and the tax brackets for 2025. Also, here's our cheat sheet for filing your taxes and our picks for the best tax software.

When is the IRS deadline to claim a tax refund from 2021?

By law, the IRS is required to hold on to unclaimed income tax refunds for three years, and filers have a three-year window from the original due date to claim their refunds. If you don't file to claim your tax refund after three years, the money becomes the property of the US Treasury and you won't be able to get it back.

If you want to claim your missing money, you'll need to file your tax return by April 15, 2025.

What is the Earned Income Tax Credit? 

By failing to file a tax return, you risk losing more than just your refund of taxes paid or withheld in 2021. Many low- and moderate-income workers may qualify for the Earned Income Tax Credit. 

For 2021, the EITC could be worth up to $6,728 for taxpayers with eligible children. This credit is designed to assist individuals and families with incomes below certain thresholds. The 2021 income limits for the EITC 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 individuals with two qualifying children;
• $42,158 ($48,108 if married filing jointly) for those with one qualifying child; and
• $21,430 ($27,380 if married filing jointly) for individuals without qualifying children.

How can I find out if the IRS has an unclaimed tax refund for me?

There's no easy way for taxpayers to discover whether they're missing tax refund money from 2021. The only way to learn if the IRS is holding an old refund for you is to file a return for that year.

The IRS Where's My Refund tool can't help; it only reports the refund status of those who've already filed their taxes.

How can I claim my 2021 tax refund from the IRS?

You will need to submit your return for tax year 2021 through the mail. Most tax software publishers keep their prior years' software available for three years. Tax software can help you complete IRS Form 1040 and all the other required forms and schedules but it cannot e-file for you. You'll need to print, sign and properly address the printed tax return, which needs to be postmarked no later than April 15, 2025, for most tax filers.

To file a 2021 tax return, you'll need to mail it to a specific regional IRS center listed on the last page of the IRS Form 1040 instructions. The address you need to use depends on the state or US territory in which you live.

What documents do I need to file a past income tax return?

You can find the tax forms for tax year 2021 on the IRS forms page. 

You can also order a free wage and income transcript from the IRS and then use the information from the transcript to file your tax return. To download an instant transcript, you'll need to create an online IRS account if you don't have one.

Can my unclaimed refund be kept by the IRS to cover tax debt?

If you think you were owed a refund but you don't receive one after you file your old tax return, all or part of your tax refund may have been offset, meaning it was used to pay past-due federal tax, state income tax, state unemployment compensation debts, child support, spousal support or other federal debts such as student loans.

Tax refund offsets that cover past-due federal taxes are managed by the IRS and you should receive a notice from the agency explaining the offset. All other refund offsets are handled by the Bureau of Fiscal Services' Treasury Offset Program, which should also send you a notice if your tax refund was used to pay debts.

If you don't believe you owe back federal taxes and receive an offset notice from the IRS, you can call the agency at 800-829-1040 for more information. For all other debt-related tax return offsets, you can call the Treasury Offset Program at 800-304-3107 to find out more details.

For more tax info, check out CNET's taxes cheat sheet and this roundup of important deadlines for this upcoming tax season.