Question

How do the interest payments for delayed refunds work? What’s the interest rate and how specifically is the interest payment calculated?

Forum|Forum|4 years ago
June 26, 2021
1 reply
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I filed and had my return accepted on February 14, 2021 and have yet to receive my refund. How do they calculate interest payments for the delayed refund? Timing, rates, etc.?

TurboTax Live Self Employed

Critter-3

https://www.cnbc.com/select/what-to-do-with-late-tax-return-interest-check/

K

kyounkmanAuthor

I’ve seen this article and others similar to it, but how are they figuring $18 for an interest payment? That’s what I’m trying to figure out.

If it’s an assumed 3-5% interest rate compounded daily, depending on how much the IRS owes you as a refund, that could be a sizable chunk of money—not a puddly $18.