
The IRS is sending out more checks this year.
Angela Lang/CNET
If you filed your taxes after April 15, there might be more money coming your way from the IRS in the form of an interest check. Tax Day was July 15 due to the tax agency moving the filing due date in response to theCOVID-19 outbreak. And that was just one of several unconventional policy changes the federal government undertook to help struggling Americans during the pandemic. It also issued stimulus checks, which were sent to qualified taxpayers back in April. (If you haven’t received one yet, check out our guide on how to track your stimulus check.)
President Donald Trump signed four executive actions on Saturday to give additional relief, including one for a payroll tax holiday and another for an extra $400 per week of unemployment benefits (a potential extension — at a lower amount — of the $600 provided in the CARES Act, which expired July 31). Democrats and Republicans have been in negotiations over additional relief included in the HEALS Act, introduced in late July, which would include a second round of stimulus checks.
But the stimulus payments are wholly separate from tax refunds, millions of which are still being processed by the IRS. The 2020 tax deadline extension, which provided all taxpayers with more time to fill out paperwork, calculate refunds and scrape together payments, will also result in some taxpayers getting a few more dollars from the government. Read on to find out if you can expect to receive a second tax refund payout from the IRS — and when it might show up in your bank account or mailbox.
Why is the IRS sending a second check to some households?
Every year, the IRS pays interest on refunds that take extra time to process, with interest accruing from April 15 until whenever the agency cut your check (or dropped your direct deposit). If you haven’t yet received your refund check, you’re not alone: The IRS said back in June that it had a backlog of 4.7 million returns.
This year, the interest accrual period began on April 15, as usual — even if you didn’t file until July 15. So, in effect, there was a modest but real advantage to filing later this year. Couple that with the IRS backlog, and it means more people than usual will get a tax interest payment from the IRS this year.
Are these payments from the IRS different from the stimulus payments?
Yes. The CARES Act provided a one-time stimulus payment to eligible US residents, designed to bring financial relief to the millions of people impacted economically by the pandemic. It’s a bit confusing — because the stimulus checks were issued by the IRS, and based on a taxpayer’s individual’s 2019 adjusted gross income. But they’re totally separate and different from this year’s tax refunds and tax interest payments.
Who will receive a tax interest payment?
Taxpayers eligible for a refund — who didn’t receive it by April 15 — will accumulate some amount of interest. The sum of that interest may be sent out as a second check or direct deposit.
How much will I get?
As usual, the IRS will pay 5% annual interest, compounded daily through June 30. On July 1, the interest rate decreased to 3%. For every $1,000 due back to you, you can expect to collect about 14 cents in interest per day between April 15 and June 30 and 8 cents a day thereafter.
When will I get my tax interest payment?
The IRS says that tax interest payments could come in a second check or direct deposit — though they could also be added into a forthcoming refund. In an email to CNET, the IRS said: “The exact timing is yet to be determined, but it will be later this summer. “
Is there a catch?
There’s always a catch.
“The interest is taxable,” said Pamela Lucina, chief fiduciary officer and head of the trust and advisory practice at Northern Trust Wealth Management. “This means you will receive a 1099-INT for 2019 and will pay taxes on it when you file your 2020 return.”
32ngpc2vvq19xzw7c880fm8392t67nluie2k58c08g94vdu4ys03
pj97ai1plyj1dg2lpby1o1n68m7g0rck6274uij6jcskukd6l181
i2et5ze3938ety6q3o9bpb70lv311dqez510dpshg3535q0lpdbi
2w65101007d3zolpl5xro7zb6bqorh7f9jhh078una34v016wg56
nice blog keep up the good work
With the mixture of bodies and lenses I bring, it affords me a
good variety of focal lengths, which range from approximately 90mm to 640mm.
Their society just like ours comprises of many different shapes, sizes and colors.
A sign points as a result of the table where Meg Ryan pulled off her memorable deli scene in “When Harry Met Sally.
h0oxmt1cyhkz9ayc8y25tl0d4e6xl88o00lkug4s5zparxocxqcm
Earn 10$ with Stellar Lumens. https://bit.ly/2M91WYR
Proof Of REAL Growth. Women Lie : Size DOES Matter. They HATE It When It’s Small. Don’t Disapoint Her With Your Little Guy
Source toefl speaking
Wow! Thank you! I always wanted to write on my website something like that. Can I include a portion of your post to my blog?
Hi, i think that i saw you visited my blog so i got here to 搟go back the choose?I’m attempting to in finding issues to enhance my website!I guess its good enough to make use of a few of your ideas!!
That is very attention-grabbing, You are a very skilled blogger. I’ve joined your feed and look ahead to looking for extra of your great post. Additionally, I’ve shared your site in my social networks!
This is very interesting, You’re a very skilled blogger. I have joined your rss feed and look forward to seeking more of your magnificent post. Also, I’ve shared your web site in my social networks!
rx pharmacy specialty pharmacy pharmacies near me
That is really fascinating, You are a very skilled blogger. I have joined your feed and stay up for in the hunt for more of your magnificent post. Also, I have shared your web site in my social networks!