What to know if you where one of the Millions of taxpayers who receive a tax refund interest payment

Over 14 million individual taxpayers were sent interest payments from the IRS. The taxpayers who received these payments filed their 2019 federal income tax returns by July 15 deadline and were owed refunds. The interest payments were due to the IRS postponing this year tax deadline because of COVID19. The interest payments to individuals averaged about $18. These interest payments were sent by direct deposit for those who had bank accounts on file and mailed by check to others.

Do you have to claim this interest payment? Yes, any interest payments made to you from the IRS is considered income and is taxable. It's important if you received this federal interest payment money that you report it properly as income. The good news is that IRS will send a Form 1099-INT sometime in January 2021 so that you can properly file this income. If you need help, please contact us at info@prospectivebooks.com

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