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dbbslc
New Member

The IRS paid interest with my refund for 2019. A letter provided a Payers Federal Identification Number. How do I enter this?

I have not received a 1099-G but I did get a letter a while back after I finally received my 2019 refund. The IRS paid me an additional amount over my refund as Interest Paid. I imagine it was becasuse they were so long in getting my refund to me. The did provide a Payers Federal Identification Number. Do I have to enter this as an additional Employer income or should it be seen as a 1099-G?
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1 Reply
AnnetteB6
Employee Tax Expert

The IRS paid interest with my refund for 2019. A letter provided a Payers Federal Identification Number. How do I enter this?

Neither.  It should be entered as interest income reported in box 1 of Form 1099-INT.  Even though you have the Federal ID number for the payer of the interest, that information should not be required to report the interest on your return.  You also do not report the total amount of your Federal tax refund, only the portion that was interest.

 

Use the following steps:

  • On the top row of the TurboTax online screen, click on Search (or for CD/downloaded TurboTax locate the search box in the upper right corner)
  • This opens a box where you can type in “interest income” and click the magnifying glass (or for CD/downloaded TurboTax, click Find)
  • The search results will give you an option to “Jump to interest income
  • Click on the blue “Jump to interest income” link to get started

The payer of the interest in this case will be 'Internal Revenue Service' and the amount you received will be entered in box 1.  

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