nearly 14 million Americans will receive an interest payment check for their delayed tax refunds.
A long-standing law requires the IRS to pay interest to those who received their tax refunds late — notably 45 days after the typical filing date of April 15. Just as taxpayers must pay interest on any outstanding obligations they owe to the IRS, the rule works both ways if the IRS is late on the money they owe back.pushing back the filing deadline to July 15 this year, the IRS is paying interest calculated from the original April 15 filing deadline.
The IRS is only required to pay interest on late tax refunds to individual income tax filers, so businesses are not eligible. Those who receive the interest payment should keep in mind that they are considered taxable income. The money will be reported when you file your 2020 federal income tax return in spring of 2021.IRS saysThough it's not a big payout, something this small can grow to be much more if you stash it in the right place.
, which is essentially earning interest on interest, you don't need much money to get started saving.