How to calculate your interest
With the average brick-and-mortar savings account paying well below 1%, the IRS interest may sound appealing. However, it’s still lower than annual inflation, which grew by 8.5% in July.
And with the average 2021 tax refund ຫຼາຍກວ່າ 3,000 ໂດລາ, many filers would rather have their payment on time, Lucas said.
For perspective, in 2020, the IRS reported that the average refund interest check on 2019 federal returns was $18. Interest rates at that time were 5% during the second quarter, and 3% during the third quarter.
‘It’s taxable, so be prepared to report it’
If you’re paid interest for a delayed refund, you can expect to receive ແບບຟອມ 1099-INT from the IRS, which must be included on your tax return, he said.
It’s taxable, so be prepared to report it.
Tommy Lucas
financial advisor at Moisand Fitzgerald Tamayo
“If it doesn’t cross-check, they’re going to flag it and your return is going to get held up,” Lucas said. “Don’t forget about that interest because they will expect you to include it on ຕາຕະລາງ B. "
He said delayed tax refunds and interest payments speak to the importance of filing an error-free return ເພື່ອຫຼີກເວັ້ນການຊັກຊ້າການປຸງແຕ່ງ.
As of Aug. 5, there were 9.7 million unprocessed individual 2021 tax returns, ອີງຕາມ IRS, with 1.8 million requiring “error correction or other special handling.”
Source: https://www.cnbc.com/2022/08/16/irs-interest-jumps-on-oct-1-how-much-youll-get-for-a-missing-refund.html