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Millions of Americans Could Lose Nearly $850 in Tax Refund—Here's Why!

American taxpayers can get extra $750 to $850 in tax refund as the IRS announces over $1 billion unclaimed amount.

By Kanika Saini
Who doesn't love some extra cash as a surprise? Well, American taxpayers could get an extra $750-850 in tax refunds this year. The Internal Revenue Service (IRS) has recently announced that more than 1.1 million people across the country have not yet claimed their refunds for tax year 2021.  As per the federal department, more than $1 billion is unclaimed by taxpayers who didn't file for income tax returns for the 2021 tax year. This translates into an average refund amount of $781. People still have a chance to claim this money by filing their ITR before April 15, 2025. As per the law, US taxpayers have up to three years to claim their refund from the IRS. If not done within three years, the money becomes the property of the US Treasury. This means if people don't file their pending claims for the year 2021 by April 15, 2025, over $1 billion would go to the US Treasury, and any chance of getting the money back would cease to exist. IRS has issued details regarding how many people from each state may be entitled to a refund. It also mentions the median refund amount, although the actual amount will vary from person to person based on their tax situation. Take a look: IRS reveals over 1 million people haven't claimed their tax refunds for 2021 (Image Source: IRS) However, it's important to note that these amounts exclude credit. Several low and moderate-income households are eligible for the Earned Income Tax Credit (EITC). However, when a person misses out on filing a tax refund, they also lose out on ETIC. For the year 2021, the ETIC was worth nearly $6,728 for taxpayers with qualifying children.

How to file a tax return for 2021?  April 15 is the last date to file for tax returns for the year 2021. So, now's the time to file for it if you haven't already, or else lose the money forever. Here's a step-by-step guide on how to do it:
  1. Login to your IRS Individual Online Account at IRS.gov. If you are a new user, you have to create an account on the same website. Here, you can find information about your past tax returns, tax account information, etc. 
  2. Gather key documents to file for the refund. This includes Forms W-2, 1098, 1099 or 5498 for the years 2021, 2022 or 2023 that can be obtained from banks, employers, or other payers. 
  3. Those who are unable to perform the above steps can get a tax return or tax account transcript mailed to them by using Get Transcript by Mail on IRS.gov. You can also ask for the transcript via mail by calling the automated phone transcript service at 800-908-9946.
https://www.youtube.com/watch?v=ecXepH6Slhg However, obtaining the transcript via mail could take weeks and you might miss out on the deadline. Therefore, we highly recommend following the first two steps and claim your money.

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