This time my federal tax return took a little longer to process (submitted on July 15 and got the deposit on Aug. 5). However, I did get my refund. But, it is slightly larger than what I had requested -- by approximately $33. It has been nearly two weeks since and I haven't gotten any correspondence from IRS. What should I do?
More than likely that is the interest paid by the IRS for the late federal tax refund.
IRS website for information - https://www.irs.gov/newsroom/irs-statement-on-interest-payments
Interest on individual 2019 refunds reflected on returns filed by July 15, 2020 will generally be paid from April 15, 2020 until the date of the refund. Interest payments may be received separately from the refund. By law, the interest rate on both overpayment and underpayment of tax is adjusted quarterly. The interest rate for the second quarter, ending on June 30, 2020, is 5% per year, compounded daily. The interest rate for the third quarter, ending September 30, 2020, is 3% per year, compounded daily.
Thanks for the info, all. From the IRS news release, looks like they will be sending a 1099-INT for the interest.
Is there a way for me to find out if this is indeed the case? I didn't get two separate deposits. Just one with the slightly larger amount.
I just did the calcs and based on the 5% interest until June and the 3% interest effective July 1 (both compounded daily). The final tax refund I calculated was close to the amount I received. Looks like this was the interest then. Thanks again!
It would surely be comforting to get a notice from the IRS saying that the interest was bundled in, especially given that my return took unusually longer (3 weeks) this year to process.