Pennsylvania Paying 7% on Refunds?

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. ??
Reply to
D.D. Palmer
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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

Reply to
Katie

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

Reply to
D.F. Manno

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