You may owe Uncle Sam tax on a tax refund.
November 19, 2020
Taxpayers who received a federal tax refund in 2020 may have been paid interest. The IRS sent interest payments to 13.9 million individual taxpayers who timely filed their 2019 federal income tax returns and received refunds. Most interest payments were received separately from tax refunds. They were made because of this year’s extended COVID-19-related filing due date from April 15 to July 15. Interest payments are taxable and must be reported on federal income tax returns. In January, the IRS will send a Form 1099-INT, Interest Income, to anyone who received interest totaling at least $10.