Interest with Refund

coolblue — Mon, 09 Mar 2026 10:51:23 GMT

So for my 2020 return, I ended up getting ~$7-8 more on my refunded than Turbo Tax had calculated. I downloaded my Account of record Transcript and it shows code 846 with the amount I received followed by a code 776 which is a negative value (subtracting which gives me the amount Turbo Tax had calculated)

My research and news reports suggest this is an interest amount issued by IRS since they owed me a refund. Now for my 2021 filing, am I supposed to show the additional dollars as an income? The refund from last year is an income, correct? Some help would be awesome.

Re: Interest with Refund

rjs — Wed, 13 Apr 2022 13:56:22 GMT

The refund itself is not income. You do not enter it anywhere in your federal tax return. The interest is income. You report it as interest income, the same as interest from a bank. Enter it as if you got a Form 1099-INT, even though you didn't. For the payer's name enter Internal Revenue Service. Enter the amount in box 1.

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Interest with Refund

Re: Interest with Refund