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New Member
posted Jun 5, 2019 11:41:34 AM

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

0 3 350
3 Replies
Expert Alumni
Jun 5, 2019 11:41:35 AM

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.

Level 2
Feb 19, 2021 7:47:46 PM

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?

Expert Alumni
Feb 19, 2021 8:10:42 PM

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.