IRS Sends Out Interest Payments

Taxpayers receiving a refund may also receive an interest payment.  Did you file your IRS tax return between April 15th and the extended deadline of July 15th:  In mid-August, interest payments were sent to nearly 14 million individual taxpayers. People who got these payments filed their 2019 federal income tax returns by the July 15 deadline and were owed refunds.

The IRS says the interest payments averaged about $18. The IRS issued most of the payments separately from tax refunds.  Most of the interest payments were sent out as a direct deposit, but others were sent as checks, with a notation of INT Amount on the check.

The IRS says the interest amount is taxable, so make sure you keep a record and included it on your 2020 tax return.  The IRS will send a Form 1099-INT in January 2021, to anyone who gets a payment of at least $10.

This interest payment is due to COVID-19 and the resulting disaster-related postponement of the deadline for filing.  This refund interest only applies to individual taxpayers. Businesses aren’t eligible.

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