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Why the IRS just sent you $18

Did you get a payment of $18 from the IRS? Here’s what you need to know

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In this April 23, 2020, file photo, President Donald Trump’s name is seen on a stimulus check issued by the IRS to help combat the adverse economic effects of the COVID-19 outbreak, in San Antonio.

In this April 23, 2020, file photo, President Donald Trump’s name is seen on a stimulus check issued by the IRS to help combat the adverse economic effects of the COVID-19 outbreak, in San Antonio.

Eric Gay, Associated Press

The Internal Revenue Service will send extra cash to about 14 million Americans in the coming days.

The IRS announced it owes interest payments to 14 million Americans who received their tax refunds after April 15, or those who are still owed their refunds.

  • The average payment will be $18.
  • Those with direct deposit information on IRS files will receive the payment that way.

Why did you receive the money?

According to Yahoo! Finance, the IRS delayed the deadline to file 2019 taxes to July 15, which is three months after the original deadline, and now they have to pay for it.

  • “The delay means refund money sat in the hands of the IRS longer than usual. In essence, taxpayers who took the opportunity to file later were lending that money to the government. During that time, the money generated interest — interest that the IRS is now required by law to pay out.”

Just remember:

  • These payments are taxable. So you will have to report the interest in your 2020 federal income tax files next year, according to USA Today.