Why the IRS Owes Many Young People Thousands, According to a 20-Year Tax Expert (Exclusive)

After more than 20 years of helping people navigate the IRS, TurboTax CPA and tax expert Lisa Greene-Lewis is sharing some eye-opening advice for young Americans. In an exclusive interview with Men's Journal, she explained that many young people are leaving thousands of dollars on the table from unclaimed refunds.

With decades of practical experience, including extensively sharing her knowledge with the public, she told us that major tax credits frequently go unclaimed and many young people could still recover significant money.

How Much Money Young People Can Realistically Get Back

Men's Journal: What are the biggest refundable tax credits or deductions that young people in their 20s and 30s are most likely to qualify for?

Lisa Greene-Lewis: One of the biggest tax credits that young people in their 20s and 30s are most likely to qualify for is the Earned Income Tax Credit. But many young Americans are leaving money on the table: the IRS says one out of five people miss the credit. It is a substantial credit - up to $8,046 if you have three kids - and is fully refundable. And, for those who don’t have kids, they can claim the Earned Income Tax Credit, but have to be at least 25.

The American Opportunity Tax Credit for the first four years of college is also refundable up to $1,000, which is 40% of the $2,500 credit. If you have a dependent child under 17, you may qualify for the Child Tax Credit, which is partially refundable for up to $1,700 of the $2,200 credit.

Men's Journal: If a young person has never filed taxes before, what are the most common refundable credits they’re probably leaving on the table — and what’s the average amount they could claim?

Lisa Greene-Lewis: Many young people don’t file their taxes because they make under the IRS filing threshold: $15,750 if they file single and $31,500 if they are married filing jointly. However, if they had taxes withheld and are eligible for some of the refundable credits -  like the Earned Income Tax Credit up to $649 with no kids, and the American Opportunity Tax Credit worth up to $1,700 - then they are leaving money on the table by not filing. The IRS reports over $1 billion in unclaimed refunds every year, and the average unclaimed refund is over $800. Many unclaimed refunds belong to young people who make under the IRS filing threshold and don’t file.

Men's Journal: How far back can someone go to claim missed refunds? Is there a time limit for getting money back from the IRS, and what’s the largest refund you’ve seen a young person recover by finally filing old returns?

Lisa Greene-Lewis: Many people are surprised to learn you can go back three years from the date you filed your tax return to claim a refund or credit. 

Men's Journal: What’s the single biggest refund surprise you see young gig workers, freelancers, or side-hustlers get when they finally file — especially with things like self-employment tax credits or home office deductions?

Lisa Greene-Lewis: Young gig workers and freelancers are often surprised by the various deductions they are able to claim. For instance, a rideshare driver can claim up to $31,500 deduction for tax year 2025 for certain SUVs weighing over 6,000 pounds and under 14,000 pounds if it was purchased for their business and they use it more 50% for their business.

Gig workers and freelancers can also deduct other expenses directly related to their business, including expenses like start up costs (up to $5,000), advertising, marketing, supplies, equipment, and the home office deduction. Many people are surprised by how much the home office deduction really is since it is based on a portion of your rent, mortgage interest, property taxes, and utilities, depending on the percentage of your home you use for your business.