Should I report the interest received for the 2019 tax refund this year in the 2020 tax refund?

[wangxu232411]

I filed my 2019 tax in March 2020. Ten months later, I received the tax refund plus interest from IRS in Feb 2021.

Should I report the interest this year in the 2020 tax refund? Or should I report the interest next year since I receive the interest in 2021?

Thanks a lot for the help.

[ErnieS0]

It depends. Is your Department of Treasury check or direct deposit dated 2020 or 2021? If it is dated 2021, it goes on next year’s tax return. If it arrived late and was dated 2020, put it on this year’s (2020) return.

Interest earned on a federal refund is taxable. The IRS pays interest when it is not able to give you a timely refund.

Related Resource:

• Coronavirus Tax Relief: 2019 tax refund interest

[wangxu232411]

Thank you for the reply. It is dated 2021. I think I will report it next year.