2007-08-14 02:09:06 · 5 answers · asked by Brianna G 1 in Business & Finance ➔ Taxes ➔ United States
If your interest is more than $10 you will get a 1099-Int from the bank after the end of the year indicating how much interest you earned. You will put that information on Schedule B, which will need to be carried over to page 1 of the 1040. Sometimes the bank will send you a 1099-Int even if the interest is less than $10. But if they send you a 1099 you need to report the interest on your tax return.
2007-08-14 03:00:00 · answer #1 · answered by Anonymous · 1⤊ 1⤋
Yes you do - you show it on the Interest line. If your interest is over $10 for the year, the bank will send you a 1099-int for the amount. But even if it's less than that, you are still required to report it on your tax return - you can usually find the number on your last statement for the year and sometimes also on the January statement the next year.
2007-08-14 03:05:16 · answer #2 · answered by Judy 7 · 0⤊ 0⤋
How it works is when you opened the account, the bank asked for and recorded your SS# and sometime in January your bank will be sending you a 1009-INT showing how much interest they paid you. The bank also submits that info to the IRS as required by law.
So yes you MUST claim interest from a checking account on your taxes.
2007-08-14 02:19:10 · answer #3 · answered by Craig T 6 · 0⤊ 0⤋
Interest on your checking account is considered as income by the IRS and they want a piece of it. The bank will send you a Form 1099 at the end of the year advising the amount of interest you earned and that they are reporting to the IRS. You need to include this amount on line 8 of Form 1040, right under wages.
2007-08-14 02:20:13 · answer #4 · answered by magnolia 5 · 0⤊ 1⤋
That is correct you do, either on Sch B or the appropriate line on the front page of the 1040.
2007-08-14 02:13:41 · answer #5 · answered by Anonymous · 1⤊ 0⤋