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?
