I am wondering how to calculate the interest I will receive on my tax return. My tax return is 3 months overdue due to COVID and I've heard the IRS is paying interest, but from the articles I've read, I'm unsure of how they calculate it.
I read that 3rd Quarter interest rate is 5%
Is this calculated per day? Is it per annum?
I'm so confused on how it's figured.
Just as an example, say I'm receiving $1500 refund.
Do I take 1500 x .05 and the $75 is my total interest paid?
Or is it per day that its overdue? so like $75 per day in interest?
Or maybe neither one of these is right?
Can someone break this down for me?
You'll need to sign in or create an account to connect with an expert.
I would worry instead how you will pay the income tax on that taxable interest from US Treasury.
I'm not to worried about this. Just wondering how it works.
daily rate would be about .000137 so on a $1000 paid 30 days late you'll be $4 richer. (5%/365 *30*1000). oh you have to pay federal and state taxes on it in 2020
Still have questions?
Make a postAsk questions and learn more about your taxes and finances.
gowrish
New Member
SelenaP
New Member
jbh123
Level 1
taxman2011
Level 1
riogrande
New Member
Did the information on this page answer your question?
You have clicked a link to a site outside of the TurboTax Community. By clicking "Continue", you will leave the Community and be taken to that site instead.