Updated March 13, 2025 6:38pm EDT
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IRS headquarters in Washington, D.C. (Samuel Corum/Bloomberg / Getty Images)
WASHINGTON – Taxpayers in D.C., Maryland, and Virginia could be missing out on millions of dollars in unclaimed refunds from the IRS, and time is running out to claim this money.
Over $1 billion in unclaimed refunds
By the numbers:
The Internal Revenue Service announced this week that nearly 1.1 million people across the country could be eligible for a share of over $1 billion in unclaimed refunds for the 2021 tax year. However, taxpayers must file their returns by April 15 to receive the refund.
According to the IRS, the median refund amount for 2021 is $781, but it could be higher for some, especially low-to-moderate-income earners who qualify for the Earned Income Tax Credit. For 2021, the EITC could have been worth up to $6,728 for eligible taxpayers with children.
By law, taxpayers typically have three years to file and claim their tax refunds. If they fail to do so within that time frame, the funds are forfeited to the U.S. Treasury.
For taxpayers in the D.C. area, here’s the breakdown of potential refunds:
- Washington, D.C.: An estimated 2,700 people are owed an average refund of $883, which comes out to a whopping $2,642,900.
- Maryland: About 22,900 people are an average of $837 in unclaimed refunds. That comes out to a total of $21,766,300.
- Virginia: Around 28,500 people are owed an average of $749 back, which adds up to $25,896,200
In all, the DMV could leave $50,305,400 in potential refunds on the table if not claimed by the deadline.
The IRS also reminded taxpayers that their refunds could be held if they haven’t filed their 2022 and 2023 tax returns. Additionally, any outstanding debts, like unpaid child support or student loans, could reduce the refund amount.
Average tax refund for 2025
What we know:
Meanwhile, for the 2025 tax season, millions of Americans have already received their tax refunds. As of February 21, the IRS had issued more than $102.2 billion in refunds, with the average refund amount seeing a 7.5% increase from last year, now averaging $3,453.
The average direct deposit refund has also risen by 7.1%, reaching $3,505.
How to file a 2021 tax return
What you can do:
If you haven’t filed yet, here are resources to help organize your documents and ways to access free assistance.
You can also view the complete state-by-state list of potential refunds here.
The Source: IRS