13.9 Million Taxpayers Will Receive IRS Refunds.
Published August 21, 2020
This week, millions of individual taxpayers who filed last year's federal taxes on time will receive a refund, called an interest payment, from the Internal Revenue Service (IRS).
About 13.9 million individuals who filed their 2019 federal taxes by the deadline of July 15th will see an interest payment deposited into their account or will receive a paper check. The average amount of this interest payment is $18 and is issued separately from your tax refunds. Roughly 12 million individuals will receive the interest payment via direct deposit. Those remaining out of the 13.9 million will receive a paper check with a notation that will say “INT Amount”.
Are IRS Interest Payments Taxable?
Any interest payments higher than $10 is taxable, and those who receive any amount above $10 are required by law to report the interest payment in their 2020 federal taxes. The IRS will send a Form 1099-INT to individuals who receive an interest payment of at least $10 sometime in January 2021.
Why did I receive an IRS Interest Payment?
The decision to push back the 2020 filing deadline from April 15, 2020 to July 15, 2020 was due to the economic impact of COVID-19. Since the filing deadline was pushed back 3 months, the IRS housed the tax refunds of individual taxpayers for longer than usual and continued to collect interest from the refunds not yet dispersed. It is required by law that the IRS must pay back the interest they collected to the individual taxpayers.
Who isn’t receiving an Interest Payment?
If you filed your taxes early and received refunds before April 15, 2020 or if you filed after the new deadline of July 15, you will not receive an interest payment. The law also only requires the IRS to make interest payments to individual tax filers, not to businesses. For more information, visit irs.gov.
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