Did you know that the IRS is sitting on over $1.5 billion in unclaimed tax refunds? That’s right. Millions of taxpayers may have money waiting for them, but they don’t even know it. If you’re one of them, a few simple steps could put cash back in your pocket. Intrigued? Keep reading to find out if you’re eligible for one of the IRS’s surprise refunds, and what you need to do to claim it before the deadline.

Why Are These Refunds Unclaimed?

Every year, people across the U.S. miss out on tax refunds for a variety of reasons. Whether the return was incomplete, not filed at all, or simply lost in the shuffle, billions of dollars go unclaimed. The IRS typically provides a three-year window for taxpayers to claim a refund, but for the latest batch of unclaimed refunds from 2021, time is almost up. The deadline to claim was JApril 15, 2025!

The agency estimates that 1.6 million Americans have money owed to them. The average unclaimed refund amount? A staggering $893. That’s money that could cover bills, pad savings accounts, or even fund a much-needed vacation.

Common Reasons People Miss Out on Refunds

1. Missing Tax Returns

If you didn’t file your taxes for 2019, you’re not alone. Life happens, and things like illness, family emergencies, or simply forgetting can get in the way. While it’s not illegal to skip filing a return without owing taxes, skipping can mean you leave cash on the table.

2. Filing Errors

Errors on returns, such as incorrect information or failing to include all tax forms, can cause a refund to go unprocessed. Occasionally, the IRS may flag returns for additional information, but many taxpayers never follow up.

3. Misplaced or Lost Refund Checks

Sometimes, refund checks go out but never reach the intended recipient due to an outdated address or bank account. These unclaimed checks often end up back with the IRS.

4. Fear of Filing

Believe it or not, some taxpayers avoid filing because they believe they’ll owe money and simply can’t afford it. However, many end up eligible for refunds they didn’t expect.

5. Low or No Income

People who earned too little to require filing a tax return often still qualify for refunds, especially if they had taxes withheld from their paychecks or are eligible for Earned Income Tax Credits (EITC).

How to Check if You’re Eligible for a Refund

The IRS does not automatically send refunds for unfiled returns. It’s your responsibility to take action. Here’s how you can check if you might be eligible:

Step 1. Review Your 2019 Records

Pull together your income records from 2019, including W-2s, 1099s, or other documents that show how much you earned and what taxes were withheld. If you don’t have these forms on hand, you can request a free transcript from the IRS.

Step 2. Visit the IRS Website

The IRS website has a “Where’s My Refund” tool designed to help taxpayers monitor their returns. While this tool works for current-year filings, it’s also helpful for gathering information about past filings and unclaimed refunds.

Step 3. File Your 2019 Tax Return

If you suspect you’re owed money, file a 2019 federal income tax return as soon as possible. You can download blank forms from the IRS website or contact a tax professional for assistance.

Step 4. Update Your Address or Banking Info

Ensure that the IRS has your current mailing address and, if you opt for direct deposit, your correct bank account information. This helps prevent delays in receiving your refund.

Step 5. Keep an Eye on the Deadline

Remember, the deadline to file and claim your 2019 refund is July 17, 2023. Miss it, and your money will go to the U.S. Treasury instead.

Benefits of Filing for Your Refund

Claiming your refund isn’t just about the money you’re owed. Filing your taxes has additional benefits, including:

• Restoring Credit: Filing your taxes demonstrates financial responsibility, which can help boost your creditworthiness.
• Avoiding Penalties: Although no penalties apply to unclaimed refunds, if you owe taxes from other years, filing could help reduce future fines or resolve outstanding issues with the IRS.
• Accessing Federal Benefits: Filing ensures your income-related benefits, such as Social Security or Medicare calculations, are accurate.

What Happens if You Miss the Deadline?

If you don’t file your 2019 return before the IRS deadline, you lose access to your refund permanently. The money is absorbed by the U.S. Treasury, helping to fund government programs. While that’s not exactly a waste, it’s far better for those funds to end up in your pocket.

Unfortunately, missing the deadline also means no option for appeal or special conditions to reclaim the funds later. Don’t procrastinate or wait to act. July 17 is just around the corner!

Break Down the Refund Statistics

Need some extra motivation? The IRS has shared some eye-opening statistics about the taxpayers in line for refunds:

• Median Refund Amount: $893
• States With the Most Unclaimed Refunds: States such as California, Texas, and Florida have among the highest number of taxpayers eligible for unclaimed refunds.
• Total Estimated Refunds: Over $1.5 billion.

If you live in one of these states, it’s worth double-checking your status.

Tips to Avoid Future Missed Refunds

To ensure that you never miss out on any refunds in the future:

• File Your Taxes Annually: Even if you don’t think you need to file, it’s worth confirming your status each year.
• Update Your Address: Notify the IRS whenever you move, to prevent refund checks or notices from being lost.
• Use Tax Preparation Software: Tools like TurboTax or H&R Block help streamline the filing process and minimize errors.
• Keep Records Organized: Store income records, receipts, and relevant financial documents safely.

Conclusion

Filing taxes can be a daunting task, but it is important to stay on top of your finances and accurately report your income to the government. By understanding how refunds work and taking the necessary steps to maximize your refund, you can ensure that you are receiving the most money back possible. Remember to file annually, update your address with the IRS, use tax preparation software, and keep your records organized. Happy filing!