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VolvoGirl
Level 15

Interest on refunds?

My friend got her IRS refund on July 29 for $24 more than the 1040.  Do you think it's interest?  She already got the Stimulus Check.  Haven't seen anyone asking about getting more.  Do they figure it from April 15?  Gee maybe I should have waited to file mine to get interest.  I filed in March and got my refund like in 2 weeks.  

3 Replies
BMcCalpin
Level 13

Interest on refunds?

Yes, the IRS announced in late June that it would pay interest on refunds from April 15th to the date the refund was paid. See https://www.irs.gov/newsroom/irs-statement-on-interest-payments

rjs
Level 15
Level 15

Interest on refunds?

The interest that the IRS pays on refunds is taxable income, just like interest from a bank. Your friend will have to report it as interest income on her 2020 tax return. The IRS will send her a Form 1099-INT.

 

VolvoGirl
Level 15

Interest on refunds?

Yeah I told her to put a big note in her tax file for it.

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