The Internal Revenue service recently announced that it will be sending interest payments to about 13.9 million individual taxpayers who filed their 2019 federal income tax returns on time and are receiving refunds.
The interest payments, averaging about $18, will be made to individuals who filed a 2019 return by this year’s July 15 deadline and either received a refund in the past three months or will receive a refund. In most cases, taxpayers who received their refund by direct deposit will have their interest payment direct deposited in the same account. Everyone else will be receiving a check.
The IRS reminds taxpayers that these interest payments are taxable and must be reported on the individual’s Form 1040 for 2020. In January 2021, the IRS will send a Form 1099-INT to anyone who receives interest totaling at least $10.