Waiting for your tax refund can surely be annoying.
Your waiting may have paid off, some people are seeing interest added to their refunds.
Will I get interest on my refund?
The IRS still has 9.6 million unprocessed individual tax returns. Some of those unprocessed returns are accruing interest. The agency has 45 days after the deadline to process and send returns. After that, daily compounding interest will be added.
The IRS recently announced that on July 1, interest rates will increase. The rate will increase from 4% to 5%. However, there is a catch: the interest is taxable. That means if you were counting on the extra cash, you won’t see the full amount.
You can check your refund status on the IRS website. If you filed electronically, returns are usually issued in less than three weeks. It is often less if you sign up for direct deposit.
If you filed a paper return, expect to wait anywhere from six to eight weeks.
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