The tax season in 2025 officially ended last month and the IRS has something new to say. They have just let the people in on a secret which is beyond belief – billions of dollars in refunds are still unclaimed and the window of opportunity is rapidly closing.
Latest numbers have confirmed that even the people who file returns haven’t collected not less than $3034 each because they hadn’t done it this year thinking they didn’t have to or that it didn’t apply to them
Oftentimes, the government owes this money to people with low incomes, the elderly, and part-time employees – the majority of whom are unaware of it.
Missed the Deadline? You Still Have Time to File for a Refund
Three full years are what the IRS gives the taxpayers from the original deadline to file for a refund. The 2025 tax filing date has come and gone, but the non-filers that are eligible for a refund can still claim their money up to April 15, 2028.
When one goes through the tax season, one can see that people let these payments become unrecoverable as they are convinced that no income equals no refund. But in reality, it is a mistaken belief that they end up paying dearly for.
People who do not owe any money in taxes may still be eligible for some favorable credits that would enable them to receive some of that cash directly into their pockets.
What Makes You Eligible for a Refund – Even If You Didn’t File
People most frequently receive money as a result of having paid more in withheld federal taxes or through federal tax credits and withholdings. These include:
- The Earned Income Tax Credit (EITC)
- The Child Tax Credit (CTC)
- Federal tax was subtracted from pay (even part-time jobs)
The purpose of these benefits is to aid those who have low and moderate-incomes in the U.S. These people are those who earn less than the taxable amount, and still are the ones on Social Security that had part-time income or caregiving income.
IRS: Refunds on Average reached $3,034
As per the Internal Revenue Service (IRS)’s calculations, the average refund for the people who haven’t filed is above the $3,000 threshold and in some cases, the amount is far higher than that.
Families with children, or those who have received income several months in part-time jobs, as a rule, get the biggest share of the payout, especially when a double entry of EITC and CTC is considered.
Even technologically savvy persons who worked for a short time, or received unemployment benefits in addition to wages, due to the pandemic-induced layoffs, may be unclaimed.
Causes of Missing Refund
The majority of Americans may not be under tax obligations to file a return — especially if they are subsistence dependent or get exempt non-taxable benefits.
The problem arises, however, when you are due a refund that the IRS will not send unless you file a return, whether they owe you money or not. An unfiled return will cause that money to remain with the Treasury.
When the three-year period for claiming refunds closes, there’s no revisiting the matter later.
E-filing and Getting Money Back
Begin with a recommendation of the IRS, and go to the Free File section of the website. This will enable you to have tax software tools directly for the less privileged individuals.
Here’s the next step to perform:
- Retrieve and use the respective year’s forms (if you are filing 2024 taxes, utilize the 2024 return form).
- Submit your W-2 or 1099 earnings, even if it is a meager amount.
- SOS ––– Save Our System: apply for the EITC or CTC
- E-file with direct deposit information for faster processing.
Also, it would be better if you don’t mail paper returns, the IRS suggests, however, the processing of such could create delays incumbently through the efforts of backlog recovery.
Don’t Wait Until It Is Too Late
Per the IRS data, a significant number of individuals forsake their tax refunds and the most popular cause is the presumption that they are unqualified for such benefits.
In 2023, almost 940,000 US citizens have not been able to file for the three-year period of previous refunds, that is a bit over $1 billion of unclaimed funds.
The reminder from the agency this week is unambiguous: Confirm your eligibility, submit a return, and do not disregard the refund.
We file taxes not because we owe money but to get a refund and no wonder that is how many Americans claim the taxes they have already paid. Whether due to child tax credits, low-income support, or wage cuts, the IRS can owe you even more than you think.
Do not be doubtful or let procrastination take your refund from you. A simple start today may end up with you having a couple of thousands of dollars in no time so that you could spend a wonderful vacation.
