I earned less than $10 in interest this year. My bank did not send a 1099-INT form, because it was less than $10. Am I required to report it to the IRS as income somewhere?
2007-01-22 06:59:53 · 10 answers · asked by rpertusio 1 in Business & Finance ➔ Taxes ➔ United States
You are required to report ALL income to the IRS. However, if the interest is less than $10, your bank is not required to supply you with a 1099, which means they did not tell the IRS about it either.
It's your choice, but I dout even $10 of interest is going to effect your taxes materially. $10 at 34% is only $3.40 of tax (if you are in the highest bracket).
2007-01-22 07:08:12 · answer #1 · answered by Homeslice 4 · 0⤊ 1⤋
Legally, yes, on your 1040, 1040A or 1040EZ on the Interest line. If the amount is less than $10, your bank isn't required to report it to the IRS or send you a 1099, and they probably won't.
If you're not filing anyway because you don't have enough other income to be required to, then don't worry about it.
2007-01-22 07:09:29 · answer #2 · answered by Judy 7 · 0⤊ 0⤋
I was audited by the IRS for not reporting $10 in interest from my Bank. I did not receive a 1099-INT for the amount and totally overlooked it. Two years later I get the IRS audit letter showing the bank supplied the IRS with the amount but not me. I wasn’t obligated to pay the IRS anything since the material difference wasn’t more than 1% of my original tax but I sent them a check for $3 just to be sure.
2015-02-07 08:07:46 · answer #3 · answered by Jim 1 · 0⤊ 0⤋
You aren't legally liable to report the interest. If I were you, go ahead and guesstimate the interest. The main reason? If you ever get audited, you can claim that you made an honest mistake (hopefully you did) and you can even point out the fact that you reported as little as $10 in interest on a previous tax return. The IRS won't come after you if you don't report it though...$10 just isn't worth their time.
2007-01-22 07:06:02 · answer #4 · answered by Blicka 4 · 0⤊ 1⤋
If they don't send you a 1099 they are not reporting it to the IRS/State. You don't need to report it.
2007-01-22 07:12:07 · answer #5 · answered by Dizney 5 · 0⤊ 0⤋
Everything needs to be reported, and the bank will send you a 1099.
$10 will not affect your tax amount, though.
2007-01-22 07:05:59 · answer #6 · answered by Anonymous · 1⤊ 3⤋
Yes you should report it. However, you do not have to complete a schedule B to report interest.
2007-01-22 07:40:26 · answer #7 · answered by c1523456 6 · 0⤊ 1⤋
To be honest, I don't believe that's correct
2016-08-09 00:39:09 · answer #8 · answered by ? 4 · 0⤊ 0⤋
I also have the same question
2016-08-23 15:53:44 · answer #9 · answered by Anonymous · 0⤊ 0⤋