in 2019 I was billed for an additional $107.67 the IRS said I owed for 2018. (I didn't owe, but it was the IRS so I just paid it. Then I received a notice of "interest paid or credited" for $169.22 saying it's taxable interest and I must report it as income on my return. Says it may have been paid or applied against other taxes owed. Where do I put this on my return?
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This is interest income you received from the IRS and you enter it on your tax return AS IF you had received a form 1099-INT from a bank.
In TurboTax, you can enter this interest income by following these steps:
thanks! Andwhere do I enter the $107 paid to IRS?
Federal back tax paid is not deductible and is not reported on your tax return.
but I didn't actually owe it. They miscalculated and I paid. Then they refunded + over the amount. I'm so confused
We can instruct you on how to enter 169.22 as interest, but you need to know how the 107 was applied, and what year it was applied to.
For the IRS to report 169.22 as interest, you must have overpaid at some point in time.
If you over paid 107.67 in 2019, it doesn't seem to make sense that you earned 169.22 interest on that amount in one year.
Even if that were possible, (to earn 169.22 in interest in one year) where did that money go?
You really need to contact the IRS and find out a little more about this payment and interest statement.
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