Paying taxes on a Federal refund?

Jan 05, 2010 4 Replies

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Jack 16 years ago

I amended my 2007 tax returns last October and got the Federal refund today. It was a $3,000 refund and $250 in interest. The check appears to be dated 1/1/10. I have a few questions...

1) Do I have to pay federal tax on the interest? State?
2) Does it go in 2009 or 2010.
3) The state refund came in November; presumably that goes on my 2009 federal return?
4) I didn't see any interest on the state refund. Did I miss it have to try and figure out what it might have been, or did NYS not pay interest?

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Phil Marti 16 years ago

Yes to both.

2010

Yes. See IRS Publication 525 for information on how to compute the taxable portion, if any, on your 2009 Federal return.

If they didn't pay interest you have no interest income to report.

Phil Marti Clarksburg, MD

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paulthomascpa 16 years ago

"Jack" wrote

Heck yeah.

If it was dated 2010, then it'll probably be reported on your 2010 return. The IRS probably will send you a 1099-int

If you itemized and deducted state taxes paid or withheld, then yes.

They probably didn't pay interest.

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Bob Sandler 16 years ago

They will send you something resembling a 1099-INT, but without a form number. You treat it like a 1099-INT. This confuses a lot of people, for obvious reasons. I don't know why they don't print "1099-INT" on it.

Bob Sandler

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Mark Bole 16 years ago

Actually, the IRS form does have "Form 1099" (no suffix) printed on it, in smallish type rotated 90 degrees.

-Mark Bole

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