If you are late on your tax payment, the IRS will ask you to pay interest. If they are late on a tax refund to you, they will return the favor and pay interest to you.
However, the catch is that this interest is fully taxable on your US Tax Return.
To report interest paid from the IRS in MyExpatTaxes, log in to the app and do one of the following:
1. Gross Income
- Go to the Gross Income page.
- Select “Foreign Investment Income and Worldwide Property Sales” and input the interest received from the IRS.
2. Investment
- Go to the Investment page.
- Select “Interest that is not imported on 1099-INT” and input the interest received from the IRS.
3. Interest
- Go to the Interest page.
- Click “Add Interest” and input the interest received from the IRS.