The IRS Is Sending Tax Refund Interest Checks Out To Millions Of Americans. Here’s What We Know.

If you filed your 2019 taxes before the July 15th deadline this year, you may have some extra funds coming your way!!

Look, it’s not every day we can get giddy about extra money falling into our mailboxes but today just might be that day (and you’ll want to check your mailbox often). Why?

Well, according to reports, the IRS is sending tax refund interest checks out to millions of eligible Americans.

The IRS is sending interest payments to about 13.9 million taxpayers this week. While the average payment will be about $18, every penny counts right now, right?

So, who may be receiving these refunds? Well, you can expect a payment if you filed a 2019 return before this year’s July 15 deadline and either received a refund in the past three months or will be receiving a refund.

I personally know so many that are STILL waiting on their refunds and they filed months ago. This means they will be getting a tax refund interest check so in a way, yay?!

Most interest payments will be sent electronically to the bank listed on your taxes when you filed (the same account your refund went to) and will be sent separately from tax refund payments.

For everyone else, the refund will come in a form of a check to the same address listed on your taxes filed.

The amount you receive will be based on rates set by law and interest is compounded daily. So, it sounds like the longer you had to wait for your refund, the more money you’ll get.

Normally, the IRS only adds interest to refunds issued more than 45 days after the return due date and the original tax return due date is April 15. However, because of the coronavirus pandemic, this year’s filing deadline was pushed back to July 15.

Since the change is considered a disaster-related postponement, the IRS is required by law to pay interest calculated from the original April 15 filing deadline for anyone who files their return by the postponed deadline.

You should also know that this refund interest requirement only applies to individual income tax filers and businesses are not eligible.

Oh, and in case you are wondering, this isn’t exactly FREE money (nothing ever is, right?).

If you do happen to receive one of the IRS interest payments, you must report the interest as taxable income on your 2020 federal income tax return that you’ll file next year.

In January 2021, the IRS will send a Form 1099-INT to anyone who receives interest totaling at least $10 and you will file that with your taxes.

So, in all just watch your mailbox and be happy you might get a little extra something to support your Starbucks addiction.