IRS Interest Payments
Last updated 9/4/2020 at 12:58pm
Keep an eye on your bank account for some money from the Internal Revenue Service, but this is not related to the stimulus money or “second check” many are hoping to get.
Over 13 million Americans will be getting interest payments from the IRS if they filed their tax returns on time, but have not received their refunds yet.
These interest payments average about $18, according to the IRS, and will be made to the taxpayer who filed their 2019 return by the July 15. However, it must be noted that by law, these payments are taxable if you receive more than $10.
Those who received their refund by direct deposit will have their interest payments direct deposited into the same account, while everyone else will receive a check. A notation on the check saying “INT amount” will identify it as a refund interest payment and indicate the interest amount.
The IRS said that there are delays and are processing returns as fast as they can, but due to the COVID-19 pandemic, many things are backlogged.
Many continue to hope for the second stimulus check, while others are wondering where their first one is.
Back on March 27, the House of Representatives OK’d a $2.2 trillion stimulus package named the “CARES Act,” which was later signed by President Donald Trump.
Under the plan, and based on the person’s most recently filed tax returns, individuals who earn $75,000 in adjusted gross income or less would get direct payments of $1,200 each, with married couples earning up to $150,000 receiving $2,400 – and an additional $500 per each child. So those who make more than $75,000 the amount given goes down incrementally by $5 for every $100 increase in salary.
If a person makes more than $99,000 or $198,000 for couples, no check will be given. However, not all taxpayers will qualify for checks. The bill makes it clear that everyone is eligible except for those who use an Individual Taxpayer Identification Number instead of a Social Security number. Omitting these taxpayers excludes many of those who are most vulnerable in this crisis: undocumented immigrants. People who also owe back payments in child support will not be receiving checks either.
Many received their checks at the beginning of May via direct deposit, while others were still searching on the IRS website. Those who were getting their checks mailed have had to wait a bit longer than most.
At this time, there has not been any resolution to sending a second check. However, there has been four new orders by President Donald Trump – delaying payroll tax, unemployment aid to $300 extra a week, down from the $600 a week that was previously given and has now expired, evictions halted, and student loans deferred until 2021.