INT is interest the IRS paid you for holding your money

When you see "INT" printed on your tax refund check, it means interest. The IRS paid you that amount because your refund was delayed. The government held your money longer than the law allows, and federal law requires them to pay you interest on the delay.

The interest rate changes quarterly. For the current quarter, the IRS sets the rate based on the federal short-term rate plus 3 percentage points. The rate is typically between 8 and 10 percent per year, though it varies. You do not have to do anything to receive it — the IRS calculates it automatically and includes it in your check.

Interest accrues from the date your return was due (usually April 15) until the date the IRS issues your refund. If you filed late, interest starts from the actual due date, not the date you filed. The IRS rounds the interest to the nearest dollar.

Key Takeaways

  • INT on your refund check is interest paid by the IRS because your refund was delayed beyond the normal processing time.
  • The IRS calculates interest automatically at a rate set quarterly, typically between 8 and 10 percent annually.
  • Interest accrues from the original tax important date (April 15) until the IRS issues your check, not from the date you filed.
  • You report this interest as income on next year's tax return on line 1 of Schedule 1 (Form 1040).

When the IRS owes you interest on a refund

The IRS does not owe interest on every refund. They only owe it when the refund is issued more than 45 days after the tax important date. If you filed on time and received your refund within 45 days, there is no interest payment.

The 45-day clock starts on April 15 (or the next business day if April 15 falls on a weekend or holiday), regardless of when you actually filed your return. If you filed in February and the IRS issued your refund in March, you get no interest. If you filed on time but the IRS did not issue the check until June, you get interest for the days between day 46 and the issue date.

Delays happen for several reasons: the IRS is processing a high volume of returns, your return was selected for review, you claimed the Earned Income Tax Credit or Additional Child Tax Credit (which the IRS must hold until mid-February by law), or there was an error that required correction.

How the IRS calculates the interest amount

The calculation is straightforward: the IRS multiplies your refund amount by the quarterly interest rate, then divides by 365 to get a daily rate, then multiplies by the number of days the refund was delayed past 45 days.

For example, if your refund was $2,000, the quarterly rate is 8 percent, and the IRS issued your check 90 days after the tax important date, the interest would be roughly $20. The IRS rounds to the nearest dollar, so you might see $19 or $21 depending on the exact calculation.

The interest rate is set on January 1, April 1, July 1, and October 1 each year. You can find the current rate on the IRS website under "Interest Rates." The rate applies to the entire period your refund was delayed, even if the rate changed during that time — the IRS uses the rate in effect when the refund was issued.

Reporting INT interest on your next tax return

Interest paid by the IRS on a delayed refund is taxable income. You must report it on your next year's tax return. The IRS will send you a Form 1099-INT in January showing the interest amount in box 1 (Interest Income).

On your Form 1040, you report this interest on line 1 of Schedule 1 (Additional Income and Adjustments to Income). If the interest is small — under $10 — you may not receive a Form 1099-INT, but you should still report it if you received it.

The interest is added to your other income for the year, which may affect your tax bracket or your may be able to access for certain credits. In most cases the impact is minimal, but it is worth noting if you are close to an income threshold for a credit like the Earned Income Tax Credit.

Why your refund might have been delayed

The most common reason for a delay past 45 days is that you claimed the Earned Income Tax Credit (EITC) or the Additional Child Tax Credit (ACTC). Federal law requires the IRS to hold these refunds until mid-February, even if your return is processed in January. This is a compliance measure, not an error.

Other delays happen when the IRS selects your return for examination (audit), when there is a mismatch between your return and information from your employer or bank, or when you claim a refundable credit that requires verification. Identity theft checks can also delay processing.

If your refund was delayed for reasons outside the normal processing queue — such as a correction you had to make or a missing document — the IRS still owes interest once the 45-day window closes.

What to do if you do not see INT on your check but think you should

If your refund was issued more than 45 days after April 15 and you do not see an INT amount on your check, contact the IRS at 800-829-1040. Have your return handy and be ready to provide the date you filed and the date the check was issued (shown on the check itself).

The IRS occasionally makes errors in calculating interest, though it is rare. If you believe the amount is wrong, you can request a recalculation. The IRS will review the dates and the rate in effect and issue a corrected check if needed.

Keep your refund check and any correspondence about it. If you need to dispute the interest calculation later, you will need proof of the original issue date.

Frequently Asked Questions

Do I have to pay taxes on the INT interest I received?

Yes. Interest paid by the IRS on a delayed refund is taxable income. You report it on Schedule 1 of your Form 1040 the following year. The IRS will send you a Form 1099-INT showing the amount.

Can I get interest if I filed my return late?

No. Interest accrues from the original tax important date (April 15), not from the date you filed. If you filed in June, the 45-day clock still starts on April 15. You only receive interest if the IRS issued your refund more than 45 days after April 15.

What if the interest amount on my check looks wrong?

Contact the IRS at 800-829-1040 with your check and return information. Provide the issue date on the check and the date you filed. The IRS will verify the calculation and issue a corrected check if there was an error.

Does INT interest count toward my income for credit purposes?

Yes. Interest is added to your total income for the year, which may affect your may be able to access for income-based credits like the Earned Income Tax Credit. The impact is usually small unless the interest amount is substantial.