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Why did I have to pay the IRS taxes on interest of $14.50 I made from them? What was the interest on?
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Why did I have to pay the IRS taxes on interest of $14.50 I made from them? What was the interest on?
Yes interest from the IRS is taxable income just like bank interest. They paid you interest for taking a long time to pay your refund, probably your 2020 refund or if you amended a return.
Why are you asking if the IRS owes you more refund? Did you get your 2021 refund yet?
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Why did I have to pay the IRS taxes on interest of $14.50 I made from them? What was the interest on?
report IRS interest on your next tax return.
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Why did I have to pay the IRS taxes on interest of $14.50 I made from them? What was the interest on?
@southernway41-ou - if your refund is delayed more than 45 days from the day you submit your tax return the IRS is required to pay interest on the refund. I assume the $14.50 was interest paid to you due to the delayed refund of your 2020 tax return in 2021....that is income to you, no different than any other interest you receive from a bank. bond, etc.
currently, the interest rate paid for delayed refunds is 5%.
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