| Still missing your tax refund? You'll soon receive 5% interest — but it's taxable | | |  | WED, MAY 25, 2022 | | | | If you are still waiting for your tax refund, the IRS has some (sort of) good news for you.
Here's the deal: Typically, the IRS has 45 days after the filing deadline to process returns and send refunds. After that, Uncle Sam will pay interest on your late tax refund. That's the good news.
The bad news: Any interest you receive from the IRS is going to be subject to taxes when you file your tax return next spring.
Apparently, the IRS giveth and the IRS taketh away.
CNBC's Kate Dore reports that the interest rate jumps to 5% from 4% on July 1. That interest rate is tied to the federal short-term rate, and while the IRS interest does fall below 8.3% annual inflation, it's still significantly higher than the average savings account.
If you still haven't received a tax refund, you may want to avoid using the IRS toll-free number because high call volume has been an ongoing issue with many taxpayers struggling to reach IRS agents.
The easiest way to check the status of a refund is to visit the IRS site: www.irs.gov/refunds.
The portal shows three steps: return receipt, refund approval and if the refund was sent, with an estimated deposit date.
For more cool stuff like this, be sure to visit CNBC's Financial Advisor Hub and CNBC + Acorns Invest in You: Ready. Set. Grow. | |
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