Gonzalo Freixes, adjunct professor of accounting at the UCLA Anderson School of Management, explains the average national costs to prepare your tax return for the upcoming tax season.
Thousands of taxpayers in the tri-state area are part of the over 1.1 million people across the nation who have unclaimed refunds for tax year 2021 and have until April 15 to file their Form 1040, Federal Income Tax Return, for the 2021 tax year. The IRS estimates that more than $1 billion in refunds remain unclaimed nationwide.
The IRS estimates the median refund amount is $995 in New York, $657 in New Jersey, and $860 in Connecticut for 2021. In the rest of the country, the IRS estimates the average refund amount is $781. That means half of the refunds are more than those amounts, and the other half are less. This estimate does not include the Recovery Rebate Credit or other credits that may be applicable.
Under the law, taxpayers usually have three years to file and claim their tax refunds. If they don’t file within three years, the money becomes the property of the U.S. Treasury.
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WATCH HEREThe IRS reminds taxpayers seeking a 2021 tax refund that their refunds may be held if they have not filed tax returns for 2022 and 2023. In addition, any refund amount for 2021 will be applied to amounts still owed to the IRS or a state tax agency and may be used to offset unpaid child support or other past due federal debts such as student loans.
Current and prior year tax forms (such as the tax year 2021 Forms 1040 and 1040-SR) and instructions are available on the IRS.gov Forms & instructions page or by calling toll-free 800-TAX-FORM (800-829-3676).
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SIGN UP How much would the refund be in NY, NJ, and CT, and how many people are eligible to claim it?
Based on tax information currently available, the IRS estimated how many people in each state may be entitled to a tax refund. The actual refund amount will vary based on a household’s tax situation.
| State | Estimated number of individuals | Median potential refund | Total potential refunds* |
|---|---|---|---|
| New York | 73,000 | $995 | $72,477,100 |
| New Jersey | 31,700 | $657 | $26,537,500 |
| Connecticut | 11,700 | $860 | $11,092,500 |
For the information in other states go here.
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What about credits for 2021?
Many low- and moderate-income workers may be eligible for the Earned Income Tax Credit (EITC). For 2021, the EITC was worth as much as $6,728 for taxpayers with qualifying children. The EITC helps individuals and families whose incomes are below certain thresholds. The thresholds for 2021 were:
- $51,464 ($57,414 if married filing jointly) for those with three or more qualifying children;
- $47,915 ($53,865 if married filing jointly) for people with two qualifying children;
- $42,158 ($48,108 if married filing jointly) for those with one qualifying child, and;
- $21,430 ($27,380 if married filing jointly) for people without qualifying children.
How to file my 2021 tax return?
The IRS reminds taxpayers that there are ways they can gather the past information they need to file their 2021 tax return. Here are some options:
- Create or log in to IRS Individual Online Account: The fastest and easiest way for people to view, download or print tax records and transcripts is to create or log in to their Individual Online Account at IRS.gov.
- Request copies of key documents: Taxpayers who are missing Forms W-2, 1098, 1099 or 5498 for the years 2021, 2022 or 2023 can request copies from their employer, bank or other payers.
- Get transcript by mail: Taxpayers who are unable to get those missing forms from their employer or other payers and cannot access their Individual Online Account can get a tax return or tax account transcript mailed to them by using Get Transcript by Mail on IRS.gov. Taxpayers can also request a transcript be mailed to them by calling the automated phone transcript service at 800-908-9946.
- Request a wage and income transcript: Another option is for people to file Form 4506-T with the IRS to request a wage and income transcript. A wage and income transcript shows data from information returns received by the IRS, such as Forms W-2, 1099, 1098, Form 5498 and IRA contribution information.
