About 13.9 million taxpayers who filed on or before July 15 and are owed a will receive an interest payment, the IRS said Tuesday. and for most people will arrive by direct deposit. Nearly 2 million payments will be sent as checks, with the notation "INT Amount."
The interest is calculated based on a taxpayer's refund issue date. Those with a refund issue date between April 15 and June 30 earned an annual interest rate of 5%, while taxpayers issued refunds between July 1 and September 30 earn an annual interest rate of 3%. All interest is compounded daily, and accrues between April 15 and the day the refund is issued.
Keep in mind the interest is taxable and must be reported on 2020 tax returns. In January 2021, the IRS will send statements to taxpayers who received an interest payment of at least $10. Typically the IRS has a 45-day grace period to issue refunds to taxpayers who file their return by April 15 before interest starts accruing on the amount they're owed. In normal times, the agency says it issues 90% of tax refunds within 21 days of the filing date, but it's often quicker for those who file electronically.
If you're still waiting on your refund, you can check your status on the IRS website with the following:
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