It depends. The IRS or the state would include interest in your check of you received a refund from your 2020 tax return in 2023. They are required to pay interest when a refund is due on a tax year and the payment of that refund is paid late. If you received a form from the IRS for interest paid to you, then you must report it on your tax return as interest income.
You would have to check with your state to see when they would include interest with a refund of income tax.
Stop and Start Dates for Overpayment Interest
In general, we pay interest on the amount you overpay starting from the later of the:
- Tax return filing due date
- Late filed tax return received date
- Date we get your return in a format we can process
- Date the payment was made
We stop paying interest on overpayments on the date we refund your overpayment (and interest) or offset it to an outstanding liability.
Exception: We have administrative time (typically 45 days) to issue your refund without paying interest on it.
@snoskiur
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
