Pennsylvania Paying 7% on Refunds?

Sep 12, 2008 2 Replies

Back in April, I realized that I made a mistake to my 2006 (prior year tax filing) PENNSYLVANIA return that was to net me a $900 refund beyond what was originally filed in April, 2007 (again, for tax year 2006).



It took PA 5 months to process my return but yesterday I received a check for $992 and change. I calculated this to be a 7% return, assuming that the "extra" money was interest.



Hey, Pennsylvania guaranteed 7% return? How can I get more of this? Of course most people are not nutty enough to try to play with the tax dept to get extra interest. But I am just wondering if I am missing something here or if that is really what happened (they paid me $92 interest for



17 months which is about a 7% annualized return) on $900. ??

You'll probably receive, separately, a statement that explains the amount you received.

PA pays the same interest rate on overpayments that it charges on underpayments of tax. The rate for calendar year 2007 was 8%; for calendar year 2008, it's 7%. It's a lot better for them to owe you than vice versa!

Katie in San Diego

It may very well be interest. From the Pennsylvania Department of Revenue Web site:

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