The US Internal Revenue Service (IRS) issued IR-2025-46 on 11 April 2025, reminding the 1.1 million people who didn’t file their tax year 2021 federal tax returns that they may be eligible for a refund if they file by the 15 April 2025 deadline.

The IRS estimates more than USD 1 billion in refunds remain unclaimed because taxpayers have not filed their 2021 tax returns yet. The state-by-state table below shows how many taxpayers are potentially eligible for these refunds and the average median refund in each state.

There is no penalty for failure to file if a refund is due. However, a return claiming a refund must be filed within three years of its due date for a refund to be allowed. After the expiration of the three-year period, the refund statute generally prevents the issuance of a refund check and the application of any credits, including overpayments of estimated taxes or withholding amounts, to other tax years that are underpaid. 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.

Many taxpayers who did not file may be eligible for more

Taxpayers stand to lose more than just their refund of taxes withheld if they fail to file their 2021 tax return. They could also miss out on money from any refundable tax credits, including the Earned Income Tax Credit (EITC), the Recovery Rebate Credit or other applicable credits.

Many low-to-moderate income workers may be eligible for EITC. For 2021, the EITC was worth as much as $6,728 for taxpayers with qualifying children.

The IRS previously reminded those who may be entitled to the Recovery Rebate Credit in 2021 that time is running out to file a tax return and claim their money. The Recovery Rebate Credit is a refundable credit for individuals who did not receive one or more Economic Impact Payments, also known as stimulus payments, distributed in 2021.