According to the IRS, more than 1.1 million Americans had yet to file their 2021 federal income tax returns, leaving over $1 billion in potential refunds unclaimed. However, with the April 15 deadline now passed, those who did not file their 2021 returns have forfeited their refunds, resulting in a significant loss of potential income for many Americans.
The median unclaimed refund for the 2021 tax year was estimated at $781. This figure does not account for additional credits such as the Recovery Rebate Credit or the Earned Income Tax Credit (EITC), which could significantly increase the amount owed to eligible taxpayers.
In Maine alone, approximately 4100 residents had not filed their 2021 tax returns, with an estimated $3.7 million in refunds left unclaimed. The median refund in the state was around $817, indicating that many Mainers missed out on substantial financial benefits.
Under federal law, taxpayers have a three-year window to file a return and claim a refund. After this period, unclaimed funds become the property of the U.S. Treasury.