Question

Federal refund amount slightly larger

Forum|Forum|5 years ago
August 18, 2020
2 replies
0 views

This time my federal tax return took a little longer to process (submitted on July 15 and got the deposit on Aug. 5). However, I did get my refund. But, it is slightly larger than what I had requested -- by approximately $33. It has been nearly two weeks since and I haven't gotten any correspondence from IRS. What should I do?

Thanks.

Not A Product Question

Critter-3

The IRS just sent out the following news release today.

13.9 million Americans to receive IRS tax refund interest

VolvoGirl

Employee

Be sure to remember to enter the interest into your return next year as it will be taxable interest income.

R

RD_SAuthor

Thanks for the info, all. From the IRS news release, looks like they will be sending a 1099-INT for the interest.

Is there a way for me to find out if this is indeed the case? I didn't get two separate deposits. Just one with the slightly larger amount.

DoninGA

Employee

More than likely that is the interest paid by the IRS for the late federal tax refund.

IRS website for information - https://www.irs.gov/newsroom/irs-statement-on-interest-payments

Interest on individual 2019 refunds reflected on returns filed by July 15, 2020 will generally be paid from April 15, 2020 until the date of the refund. Interest payments may be received separately from the refund. By law, the interest rate on both overpayment and underpayment of tax is adjusted quarterly. The interest rate for the second quarter, ending on June 30, 2020, is 5% per year, compounded daily. The interest rate for the third quarter, ending September 30, 2020, is 3% per year, compounded daily.