You can report that under Interest Income since it is interest from the IRS. Enter it like you have a 1099-INT in the interest section of TurboTax.
Form 1099-INT reports interest from banks, brokerages, and other financial institutions (and the IRS). Here's how to enter a 1099-INT:
- Sign into your TurboTax account.
- Open or continue to your return if it's not already open.
- Inside TurboTax, search for 1099-INT and select the Jump to link in the search results.
- Answer Yes to Did you receive any interest income?
- If you see Here's the interest we have so far, select Add interest income.
- On the following screen, select how you want to enter your 1099-INT (import or type it in yourself) and follow the on-screen instructions. You only need to enter IRS - US Treasury and the amount.