Later in the letter it says:
This information is being furnished to the appropriate department IRS.The amount of interest paid or credited to you in the calender year shown is on an overpayment of federal tax.
Please explain lol!
2007-01-13 16:26:23 · 4 answers · asked by mcmfsi 1 in Business & Finance ➔ Taxes ➔ United States
Also if I have to add this to my tax return do i add it to 2006 return or to my 2007 return and how would i put it on my return?
2007-01-13 17:25:02 · update #1
It means you overpaid on your taxes and they owe you $19.68. It's a GOOD thing, lol, so you can relax! :)
2007-01-13 16:29:32 · answer #1 · answered by Jadalina 5 · 0⤊ 1⤋
At one point you had overpaid on your taxes. The IRS treats this as a loan and pays you interest. The $19.68 should be treated as Interest Income on your 2006 tax return.
2007-01-13 19:08:27 · answer #2 · answered by delvinth 2 · 1⤊ 0⤋
They're saying that at some point in 2006 you received interest from the IRS, probably on an old tax refund that you hadn't received before that. You will declare this interest as income on your 2006 return.
2007-01-14 06:10:19 · answer #3 · answered by Judy 7 · 0⤊ 0⤋
In a previous year, you overpaid your income tax. The IRS discovered this, and is refunding your overpayment.
They are also paying you interest on the overpayment. Don't forget to include this interest as part of your income on next year's taxes.
2007-01-13 16:33:53 · answer #4 · answered by Anonymous · 0⤊ 0⤋