8 reminders from the IRS before filing your tax returns
4. Interest is taxable income
Many individual taxpayers who received a refund on their 2019 tax returns also received interest from the IRS. The interest payments were largely the result of the postponed filing deadline of July 15 due to the Covid-19 pandemic. The 2019 refund interest payments are taxable, and taxpayers must report the interest on their 2020 federal income tax return.