IRS interest on overpayment

Forum|Forum|2 years ago
February 4, 2024
2 replies
26 views

I received a 1099 from the IRS for calendar year 2023 for interest paid or credited to me on overpayment. The amount of interest is over $500. I do not understand where or how I received this payment or credit. Certainly, I did not receive a check. Where would I find this credit? I do not see any credit on my 2022 return that I filed.

JulieS

Level 15

No, this type of credit won't appear on your tax return.

When the IRS has kept your money for too long, they have to pay you interest, even if it isn't their fault.

For example: You file your tax return and owe $400, which you pay on time. In September, you amend your return because you realized you made a mistake. Your amended return shows a refund of $1,000.

Two months later, the IRS sends you a refund of $1,015. That is $1,000 that is owed on the amendment and $15 in interest. For the next filing season, you get a letter saying you were paid $15 in interest.

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VolvoGirl

Level 15

It would have been included in your refund check or deposit.

Enter interest from the IRS like a 1099Int and put the amount in box 1. Enter it manually and just enter IRS for the payer. Don't enter any other info like the address or a EIN.

Enter a 1099-Int under

Federal on left

Wages & Income

Interest and Dividends

Interest on 1099INT - Click the Start or Revisit button