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gnosjim67
New Member

On my estimated income tax payments does the IRS pay me interest on that money received?

 
3 Replies
MinhT
Expert Alumni

On my estimated income tax payments does the IRS pay me interest on that money received?

No, the IRS does not pay interest on estimated taxes you paid, even if these payments exceed your tax liability and result in a refund to you. It is your responsibility to estimate these amounts and pay them at the due dates.

However, you may incur a penalty for underpayment of estimated taxes if the estimated taxes paid were insufficient.

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Carmor51
Level 1

On my estimated income tax payments does the IRS pay me interest on that money received?

I received interest from the IRS because I asked them to hold $4,000 of my refund from 2019 and apply it to my 2020 taxes.   I received $22 interest from IRS and entered the interest received on my federal return, but I can't find out how to change my credit for estimated taxes to $4022.

Anyone know where I can enter the $22?

BillM223
Expert Alumni

On my estimated income tax payments does the IRS pay me interest on that money received?

You don't add the $22 to your estimated taxes. The IRS should have sent you a 1099-INT as well as a check or a direct deposit. Once you have entered this in the appropriate place for interest (it sounds like you already have). You are done with the $22.

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