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Returning Member
posted Apr 10, 2025 5:42:26 AM

I didn’t receive a few stimulus payments. When the check came, they gave me some interest. I was told I had to pay interest on the whole thing. Why? Eic checks untaxed?

I received 1099-INT form for the whole check of 282. I looked online for answers. It just said the checks aren’t taxable. If the interest they gave me for it being late is taxable ok, but not the whole amount?

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1 Best answer
Expert Alumni
Apr 10, 2025 5:54:11 AM

Stimulus Payments: The stimulus payments themselves are not taxable. They are considered a Recovery Rebate Credit  and do not count as income.

 

Interest on Late Payments: Any interest payment from the IRS is taxable income for the year you receive it. If the IRS pays you interest of at least $10, it will send you a Form 1099-INT reporting the interest in January of the following year. This interest must be included in your taxable income.

 

 

1 Replies
Expert Alumni
Apr 10, 2025 5:54:11 AM

Stimulus Payments: The stimulus payments themselves are not taxable. They are considered a Recovery Rebate Credit  and do not count as income.

 

Interest on Late Payments: Any interest payment from the IRS is taxable income for the year you receive it. If the IRS pays you interest of at least $10, it will send you a Form 1099-INT reporting the interest in January of the following year. This interest must be included in your taxable income.