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. (Read more Internal Revenue Service stories.)