Filed Your Tax Return on Time? You Could Get an Extra Check

Almost 14 million Americans can expect payments from the Internal Revenue Service and the Treasury Department this week, but those taxpayers won't be using them for major purchases: The IRS says the average interest payment will be around $18. They'll be made to around 13.9 million taxpayers who filed their 2019 returns by the July 15 deadline and are either expecting a refund or received one between April 15 and June 15, USA Today reports. The IRS says around 12 million people who signed up for direct deposits will receive a payment in their account, and others will get a check marked "INT Amount."

The IRS says any interest payments over $10 will be considered taxable income and should be declared on 2020 tax returns, Fox reports. The agency says most of the interest payments will be issued separately from refunds. In a release, the IRS said the provision is different from the normal "45-day rule" requiring it to add interest to refunds issued 45 days after the due date. "Instead, this year's COVID-19-related July 15 due date is considered a disaster-related postponement of the filing deadline. Where a disaster-related postponement exists, the IRS is required, by law, to pay interest, calculated from the original April 15 filing deadline, as long as an individual files a 2019 federal income tax return by the postponed deadline—July 15, 2020, in this instance," the IRS said.