Urgent Deadline Looms for Californians to Claim Unclaimed Tax Refunds
The IRS has issued a critical reminder to California residents: a massive sum of $92.3 million in unclaimed tax refunds for the 2021 tax year is at risk of being lost forever if taxpayers fail to act before the deadline. With only a short time left until the cutoff date, the IRS is urging individuals who have not yet filed their 2021 tax returns to take immediate action. Californians have until April 15 to claim their refunds for 2021. If they miss this window, the funds will revert to the U.S. Treasury, and they will no longer be able to access their rightful money. The IRS estimates that the median refund for unclaimed 2021 returns in California is $600, a significant amount that could make a substantial difference for many households.
How Many Californians Are Affected and What’s at Stake
Approximately 116,300 California taxpayers have yet to file their 2021 tax returns, leaving a substantial amount of money unclaimed. The IRS emphasizes that time is running out for these individuals to secure their refunds. Beyond the immediate financial loss, failing to file for 2021 could also have long-term consequences, such as reduced refunds in future years or complications with claiming other tax credits or deductions. Taxpayers who owe money to the IRS, have unpaid child support, or are behind on student loans may see their refunds reduced further. Additionally, those who have not filed their 2022 or 2023 returns may face smaller refunds in the future.
Tools and Resources to Help Taxpayers Claim Their Refunds
To assist Californians in claiming their refunds, the IRS offers several tools and resources. The IRS2Go app is a convenient option for checking eligibility, viewing refund status, making payments, or accessing free tax-filing services. Additionally, low- and moderate-income workers may qualify for the Earned Income Tax Credit (EITC), a refundable tax credit that can significantly boost their refunds. In 2021, eligible taxpayers with children could receive up to $6,728 through the EITC. To determine eligibility, the IRS provides the EITC Assistant tool, which asks a series of simple questions without requiring personal information like Social Security numbers or bank details.
Consequences of Missing the Deadline
If Californians fail to file their 2021 tax returns by April 15, they will forfeit their refunds entirely, and the money will go to the U.S. Treasury. This deadline is non-negotiable, and the IRS does not offer extensions for claiming refunds after this cutoff. Taxpayers who owe taxes, have unpaid child support, or are behind on student loans may also see their refunds reduced. Furthermore, those who have not filed their 2022 or 2023 returns may face smaller refunds in the future. The IRS warns that selecting certain filing options could also result in delayed refunds, so it’s essential to carefully review all options before submitting.
Steps to File Before the Deadline
With time running short, the IRS advises taxpayers to act quickly and gather all necessary documents before the deadline. Creating an IRS online account is a good first step, as it allows users to download past tax return transcripts and access other important information. Transcripts are not photocopies of tax returns but rather summaries of the information reported to the IRS. For missing forms like W-2s, W-4s, or 1099s, taxpayers can request copies from their employers, banks, or payroll providers. Alternatively, they can file Form 4506 with the IRS to obtain copies. The IRS also recommends protecting sensitive information by closing the browser after submitting such requests.
Final Reminder: Don’t Miss Out on Your Refund
The IRS is urging Californians to take immediate action to avoid losing their unclaimed tax refunds for 2021. With the April 15 deadline fast approaching, time is of the essence. Taxpayers who owe taxes or have other financial obligations should still file their returns to claim any remaining refund amount. Failing to do so will not only mean losing money but may also impact future refunds. By using the IRS’s free tools and resources, Californians can ensure they reclaim their rightful refunds and avoid unnecessary financial setbacks. Don’t wait—file your 2021 return before it’s too late and secure your share of the $92.3 million still up for grabs.
