When it comes to tax returns (because taxes are so high in the US, right?), no one likes giving money to other people even less than the federal government. Okay, good news for people who love getting money they didn’t ask for: The Internal Revenue Service (IRS) said that more than 1.1 million US people have until April 15 to get back almost $1.25 billion in taxes for the 2021 tax year.
The agency thinks that the average amount of pending refunds is about $781, but this can change based on the state and any other credits that apply. Some refunds may be several thousand dollars, since each taxpayer’s situation is different and can’t be repeated.
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It’s higher than the national average in four states: Massachusetts ($936), Rhode Island ($946), Pennsylvania ($993), and New York ($995). These amounts don’t include any possible extra benefits, like the Recovery Rebate Credit, which in 2021 gave people up to $1,400 or couples with two children up to $5,600. This benefit could be used by people who did not get economic boost during the pandemic.
The IRS says that taxpayers may get more than just the base refund. They may also get money for the Earned Income Tax Credit (EITC) or other subsidies. But the government will change any payments made in the past for stimulus projects. This year, an extra $1 billion has already been given to 1 million people who did not apply for the credit on their last tax returns.
Will the shutdown of the government affect tax returns?
Even though there was a chance that the government would shut down in March, the Senate passed money to keep the IRS open until September. But dozens of offices across the United States were affected by cuts made by Trump’s government. Up until the middle of March, professionals say they haven’t had any major problems with payment processes. So don’t worry—if you did what was asked of you, you will get your money on the date you said you would.
Tax season ends on April 15, but you have until October 15, 2018 to file with the federal government. People who file after the due date could be fined or lose their returns. The IRS says that electronic returns are usually handled in three weeks, while paper returns take four weeks or more.
Where Is My Money Back?
The Where’s My Refund? tool and the IRS mobile app let you check on the progress of your returns. 90% of refunds are sent out in less than 21 days, which is faster with direct payment. The average amount given back was $3,382 as of February 28, which is 6.3% more than in 2023.
With less than a month to go, the IRS wants you to make sure you’re eligible by using forms on IRS.gov, which is its official website. People with disabilities or salaries under $60,000 can get free tax help from groups like Volunteer Income Tax Assistance.