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Level 1
posted Mar 3, 2021 10:37:08 AM

IRS interest on a refund. Is it taxable in PA?

The IRS sent me interest based on a refund that took time to send to me. Is this interest taxable in PA?

 

0 3 1075
1 Best answer
Level 1
Mar 3, 2021 11:04:31 AM

Yes, that's correct. Us Savings Bond isn't taxable in PA, however IRS interest on tax refund is taxable on both, federal and state level. 

3 Replies
Expert Alumni
Mar 3, 2021 10:49:10 AM

Yes. The interest you received from the IRS is taxable both at the Federal and state levels.

Level 1
Mar 3, 2021 10:56:49 AM

PA does not tax US Savings Bond interest only? 

Level 1
Mar 3, 2021 11:04:31 AM

Yes, that's correct. Us Savings Bond isn't taxable in PA, however IRS interest on tax refund is taxable on both, federal and state level.