My state neglected to return my 2017 refund until February of 2019. Since it was over 90 days, they actually paid me interest. How do I report this on my 2018 return?

[rjs · Accepted solution]

When did the state pay the interest to you? If they paid it in 2019, it doesn't go on your 2018 tax return. You will report it on your 2019 tax return.

The state should send you a Form 1099-INT for the interest that they paid you. You enter it like any other 1099-INT from a bank or other payer. They will send the 1099-INT in January following the year in which they paid the interest - January 2020 if they paid the interest in 2019. If they paid it in 2018 you should have gotten the 1099-INT this past January. However, they are not required to send a 1099-INT if the interest was less than $10.

If you don't get a 1099-INT you can enter the interest in TurboTax as if you did get a 1099-INT. All you have to enter is the name of the payer, such as "Wyoming Department of Revenue," and the amount.