The IRS To Give Recipients More On Tax Refunds

Cadrene Heslop

There are millions of people living in America. There are also several programs giving residents back money from their state taxes. Thus, there are delays. This extra time ensures that the IRS gives everyone an accurate tax refund. The result? Millions of Americans await their 2021 tax return. (source)

The silver lining to the wait is that taxpayers earn interest on the outstanding refunds. This interest rate is also about to increase. Starting October 1, the interest rate will move from 5% to 6%, according to the IRS. (source)

The IRS usually does the processing within 45 days. And issue the refund before the amount earns interest. But this has not happened. A backlog of 9.7 million unprocessed individual 2021 tax returns is pending. (source)

What does this long wait mean?

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The unpaid federal refunds are slowly earning interest. So, clients will see extra on their checks when they get it. But this interest is also taxable. The interest amount is dependent on your refund. Experts say some persons can see a bonus of up to $181 before tax. (source)

You can keep tabs on your refund with the IRS’ Where’s My Refund tool.

What do you think?

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*Disclaimer: This article is for informational purposes only. This article got written using accredited media reports. *Advice Disclaimer: This article should not be considered as professional financial, tax, or legal advice. The ideas, numbers, and strategies should never be used without first assessing your own personal and financial situation, or without consulting a personal consultant, tax specialist, or financial professional.

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