The Internal Revenue Service has money for 1.1 million Americans but time to claim the funds is running out.

The IRS estimates more than $1 billion in 2021 tax year refunds remain unclaimed by filers who have not submitted their Form 1040 Federal Income Tax returns. The median refund owed is $781.

More than 18,000 people in Alabama are owed money with a median potential refund of $743.

Deadline to submit the return is April 15. Under federal law, taxpayers have three years to file and claim their tax refunds. If the return isn’t submitted within that time frame, the money becomes the property of the U.S. Treasury.

Other credits available

People stand to lose more than just their tax refund if they don’t file, the IRS warned. Low and moderate-income workers could be eligible for the Earned Income Tax Credit that’s worth as much as $6,728 for taxpayers with qualifying children.

The EITC thresholds for tax year 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.

A warning from IRS

There are cases where someone’s 2021 tax refund could be held by the IRS. If a someone has not filed tax returns for 2022 or 2023 the refund could be held until those are submitted. Any refund for 2021 will also be applied to amounts owed to the IRS or state tax agency or used to offset unpaid child support or past due federal debts, including student loans.

Need to file a 2021 tax return?

Most of the items needed to file a tax return can be obtained online. You can go here to see a complete list and steps you need to take.