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.”
- 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.