Overpayment interest for tax refund is currently 8% compounded daily which is much higher than bank interest rate for deposits which is around 5%. Would it be a good idea if you can delay filing taxes (3 years maximum) so that you get a better return on the tax refund? (Assuming you do have tax refund and you wouldn't need the money right away.)
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In general, we pay interest on the amount you overpay starting from the later of the:
We stop paying interest on overpayments on the date we refund your overpayment (and interest) or offset it to an outstanding liability.
Exception: We have administrative time (typically 45 days) to issue your refund without paying interest on it.
For confirmation and more details see IRS Interest.
No. That rate is subject to change at any moment and there are dozens of benefits from having a tax return on file.
There are also possible reporting penalties for certain types of healthcare
Overpayment interest only goes into effect after you file your Federal return. Not filing for three years means the Fed makes out cause they have your tax return money for 3 years!
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