Revieved IRS check for $13.73

[Time2]

I just recieved a check for $13.73 from the IRS without any preceding letter.
However on the check I see,
PHILAD 12/2019 TAX REFUND 30 INT $ 13.73
So, I suspect it is an interest payment. Last year I paid $0 tax, but, I way overpaid my quarterlies.

Is the IRS paying interest on quarterly over payments?

 

[njhowie]

If you filed your taxes on time this year and had a refund, you received an interest credit.

https://www.irs.gov/newsroom/coronavirus-tax-relief-2019-tax-refund-interest

 

[Time2]

If you filed your taxes on time this year and had a refund, you received an interest credit.

https://www.irs.gov/newsroom/coronavirus-tax-relief-2019-tax-refund-interest

Great, Thanks.

 

[gerntz]

How much overpayment is allowed to be paid interest on? I mean 5% is a heck of a deal.

 

[Dreamer]

We received this tax refund also and I was wondering what it was for, so thanks for this information.

 

[Amethyst]

Last month, we got an IRS direct deposit of $2.83. No accompanying explanation. We haven't paid quarterlies for years; our refund, though quite large, was prompt. So it remains a mystery, which I lack the energy to investigate.

 

[PaunchyPirate]

As others have said, this is an interest payment from the IRS. Be aware that if the amount is over $10.00, you will receive a 1099-INT form next year at tax time from the IRS. You pay taxes on that interest!

Here is a link to an IRS press release about the topic:

https://www.irs.gov/newsroom/13-poi...terest-taxable-payments-to-average-18-dollars

 

[LRDave]

Last month, we got an IRS direct deposit of $2.83. No accompanying explanation. We haven't paid quarterlies for years; our refund, though quite large, was prompt. So it remains a mystery, which I lack the energy to investigate.

Ours was $4.19. I filed very late and our refund was relatively small ($320ish). Can't even guess how that deposit amount was calculated. Yawn...... Now back to my book....

 

[JoeWras]

As others have said, this is an interest payment from the IRS. Be aware that if the amount is over $10.00, you will receive a 1099-INT form next year at tax time from the IRS. You pay taxes on that interest!

Don't get too close to any cliffs! Always allow room for surprise income.

 

[SecondCor521]

How much overpayment is allowed to be paid interest on? I mean 5% is a heck of a deal.

As far as I know, they pay interest on the entire overpayment, no matter how large.

However, two things to note:

1. The interest rate they're paying dropped from 5% to 3% recently.

2. They only pay you if they're "late" getting you your refund, and "late" is defined by them, not you. This year that happened a lot because of the virus, however in a typical year it's unlikely and not something I would count on.

 

[Koolau]

As far as I know, they pay interest on the entire overpayment, no matter how large.

However, two things to note:

1. The interest rate they're paying dropped from 5% to 3% recently.

2. They only pay you if they're "late" getting you your refund, and "late" is defined by them, not you. This year that happened a lot because of the virus, however in a typical year it's unlikely and not something I would count on.

Okay, I feel much better now. At first, I thought maybe they'd grown a heart or at least developed some intelligible rules. I should have known better. Very little has changed, but YMMV.

 

[Dtail]

No interest check for me yet, as still waiting for my refund.

 

[Stormy Kromer]

I got one yesterday too, $24. It said 2019 Int


I also overpaid my quarterly estimates.

 

[euro]

No interest check for me yet, as still waiting for my refund.

Well, at those interest rates, it may well be in your favor if they wait another 6 months....