T asked in Business & FinanceTaxesUnited States · 2 months ago

Why did I earn interest on my tax refund?

Anyone else get their refund late? I notice a notation on the refund check bottom left: INT $5.29.   The federal government actually pays interest on late payment? I suspect I'm not the only one who thinks that's weird. 

6 Answers

  • 2 months ago

    They do pay interest.

  • RICK
    Lv 7
    2 months ago

    Refunds for those that did paper  returns early were delayed due to coronavirus  layoffs and the processing of the stimulus  payments, so to make up for the delay they paid interest 

  • 2 months ago

    If IRS doesn't get your refund issued within 45 days of receipt of your return you are entitled to interest on the refund.

  • 2 months ago

    Only you think it is weird. We who have done our own taxes for years know that the government pays interest when due to the taxpayer.

  • What do you think of the answers? You can sign in to give your opinion on the answer.
  • Phil
    Lv 6
    2 months ago

    Yes They do pay interest if the refund is late.

    I am not sure if the IRS decided to do this themselves or there was a court case that brought this about. My cynicism says it was a court case.

    Some tax refunds are quite large and if the taxpayer was refunded late would be considerably worse off if it was received late and without interest.

    Also it would be quite hypercritical for the IRS to charge interest for late payment from a taxpayer but not give interest it the refund was late because of themselves.

    Obviously the IRS has set a processing time from receiving the tax return and giving any refund back. I am not sure how many weeks that is.

  • Judy
    Lv 7
    2 months ago

    yes they do, after a certain amount of time.  Next year you'll get a 1099-int for it and have to claim it as income.

Still have questions? Get answers by asking now.