If You Filed Taxes from April 15 – July 15 & Received a Refund, You Could Be Getting an Interest Payment from the IRS
You may be getting a little surprise from the IRS, but there’s a catch…
Because COVID-19 caused a disaster-related postponement of the tax filing deadline, the federal government is required by law to pay interest on tax refunds owed to individual taxpayers. This means that the Treasury Department and the IRS will send interest payments to about 13.9 million taxpayers who filed their 2019 federal income tax returns by the July 15th deadline.
Beginning this week, interest payments will be sent to individual taxpayers (not businesses) who are due to receive a refund or who already received a refund in the past three months. Anyone who paid their taxes by the original deadline of April 15th will not be getting an interest payment.
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While the amount of the interest payments vary based on the size of each tax payer’s refund, the IRS reports that the average payment will be about $18. Interest will be calculated based on the adjusted quarterly rates. The rate for the second quarter was 5%, while the third quarter dropped to 3% on July 1. If the amount owed spans across the quarters, a blended interest rate will apply.
Most interest payments will be issued separately from tax refunds. Taxpayers who received their refund by direct deposit will also have their interest payment deposited in the same account. Everyone else will receive a check with the notation “INT Amount” identifying it as a refund interest payment.
Now for the catch: These interest payments are taxable, so anyone who receives one must report it on their 2020 federal income tax return. This coming January, the IRS will send Form 1099-INT to any taxpayer who received an interest payment totaling $10 or more.
For more information, visit IRS.gov.
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I got one this morning and was surprised to see it when I did my daily account check. I had no idea what it was, but when I did a quick search, this is exactly the info I found. Thank you!
Oh good! You’re so welcome, Taryn S!
Yes, we received our refund the end of July and it was $22.00 more than what we expected and it showed that the reason was because of the interest.
So if we filed like Feb or March?
No interest payment but you also won’t have to pay taxes on it like those who get it.
No true. We filed in February and recieved ours the end of July with a $55 interest payment attached
The headline is misleading. It should say if you filed your taxes between April 16th and July 15th you’ll receive an interest check.
Also should say “and received a refund”
I agree – both DebJ’s and 4shankogirls’ modifications would make the title of the post a lot more clear
Thanks, all! We’ve updated the post so it’s more clear.
So much for filing on time huh
I had a deposit from the IRS today and had no idea why. Thought it was a scam. Thanks for the info
You’re very welcome! Glad this was helpful!
I got mine today too and thought something was fishy. Thanks for posting!
You’re welcome!
I filed my taxes mid-March and my refund did include interest. It was a paper return that I mailed. I received my refund with interest via direct deposit in mid-July.
Thank you for posting this information. I got mine this morning, and wouldn’t have known what it was if I hadn’t read your post.
You’re SO very welcome, Lizag!
We never received our payment for our 500 stimulus on kid. We got 2400 but not for our 5 year old. We filed our taxes how to you figure it out?
Are you sure he was on the 2019 return? Or if you filed in April or later maybe the irs went by 2018. So make sure he was on that return.
I read somewhere recently that there was some people that were getting a stimulus check for kids that were missed. Not sure if you’ll get yours, but hopefully you will.
You need to go on the IRS website…there is a portal for this scenario and you can submit to get that $500
That explains the 5$ in my checking acct this morning! Thanks!
Once again, those of us who filed by when we were supposed to, followed the rules, get the shaft!
How are you getting the shaft? You have had your money since April 16th (ish) and had the opportunity to invest it to make interest off of it. Honestly if you invested it well, you should have had a much better return than the IRS is sending.
I agree. Do the right thing and you never get anything.
We sent our paper return in near the beginning of Feb….didn’t receive the paper refund until July but did receive interest with our return. Interest was paid since the IRS offices were nearly shut down due to COVID thus putting a delay on issuing refunds.
Why should citizens get interest because they filed by July 15th? We filed in February before COVID even started. If they are giving interest, they should give it to everyone.
The IRS is giving interest to those people who had refunds coming because the IRS was earning interest on their tax return funds. I know it sounds backwards, especially to those who sent their taxes in by April 15th and followed the regular guidelines. Don’t worry….You’re not missing much. I’m sure the average amount of those checks is about $10.00-50.00. Plus, you have to remember to claim it as income on next years taxes. We received 32.00 today! Whoopie! I guess it’s better than owing them money, right?
So I filed before 4/1 but it took a long time to get my return. When I got it, it was slightly higher than the tax company said we’d get. On the website where you can check it said this was the amount we’d get back. I thought they audited us and found another deduction but was this interest?
They did this because many will forget and be charged a penalty. The USA is broke and will need to find new, innovative ways to RIP off the public!
Thank you HIP2SAVE for always keeping us informed! I love all the awesome info you post!
It doesn’t sound like anyone knew about the interest payment until you posted it today😊
Not true. I know about it as I’m still waiting for my refund after filing electronically on April 4th. I read an article awhile ago stating this would happen. The information has been out there. IRS offices have been closed, refunds were not processed due to lack of personnel and the interest is owed to me because it is not in my bank account but theirs. This is all due to no ones fault but the circumstances of our country, so I’ll continue to wait… and earn interest while doing so.
Still waiting on mine as well. 😢
I just received my tax refund this week!! A little late I would say!
Filed April 28 and no refund at all yet. Contacted out state rep. and was told the Utah office was closed thru July 31. Every time we check it says no info.
Yup. Filed April 3rd and we got state right away but not federal and we could really use the refund $. Still says no info and we check every day!
I’m in the same boat. I’ll watch for the interest payment, as that would at least let me know my return was received?
We mailed our taxes on March 18th, could never get any information on our filing status, neither of our SS numbers brought up any reponse. We finally received our check the beginning of August and it included an interest payment. Less than $10, but I will take it.
That’s so reassuring to those of us still waiting. Thank you!
I have to ask my CPA but I submitted mine and got my income tax refund in February so I don’t think I will get interest.
Always a “catch”!!!!
I got my $9.00 dd this morning and didn’t know what it was, thanks for letting me know!!!
Glad to see this post – that answers my question as to why I had a deposit in my account from the IRS today! I filed in March the week they shut down and didn’t receive my refund until first part of July.
Wow I should have filed late 🤣
If I filed late I would have been without my own overpaid money for months. They can keep the $9 interest lol.
I had to use turbo tax this year! Glad I did. Not easy to use, but if you choose the option- they get paid out of your return, they make sure you get it in a timely manner. I believe mine was in, within 2 weeks.
I could not find a paper return. Forget calling the IRS, too long a wait!
Some things are by design.
We have a “coin shortage”, yet they cannot make more.
We got 22.92! 😊
Thanks! I just checked and got $15.62! lol
SWEET! You’re welcome, Michelle!
I received $9 in interest payment but because it was under $10 I did not receive a 1099-INT form. Now I want to report the $9 on my taxes but I don’t know the Federal Identification Number to use for the Treasury Dept. Does anyone else know?