Bank sent me a 1099

[mcsangel2]

Yep, that's normal - we get one every year too (also under $50). I always include it in our taxes, on TurboTax, in the section that asks for it.

[doctorsbaby]

We only get one if the bank paid us more than $10 in interest.

[vmars]

I report them, not sure if you HAVE to, but better to do it b/c it shouldn't make a difference in your return.

[kaylie]

We got them for the first time as well this year for two of our accounts. I've always reported it before but in the past I've had to look up the info myself.

[Roc A Bee]

I think you have to report it if its over $10.

[firelight1210]

Yup, the credit union I work for sends them out if you earn more than $10 in interest, and you do have to report it.

[mrsfarmer]

IRS even sent me one for the interest they paid me for withholding my refund due to their incompetent examiners.

[mustbeagame]

I always get them, but I have 3 different bank accounts, plus investment accounts so I usually don't include it on my taxes.

[KaraOrNot]

We got one for $.26.

[delawarejen]

You have to report all your interest, whether you get the form or not. (Well, if it's under 50 cents and you're filing taxes in the USA, our Schedule B rounds to the nearest dollar so you don't have to, but you get my point.) However, they only send you the form if you're over $10 for the year.

[delawarejen]

Jan 19, 2013 21:19:31 GMT -5 letsgetweird said:

Delaware, I thought you didn't have to report if it's under $10?

Nope. You have to report all income.  Just because they don't report it doesn't mean that you don't have to count it. It's just to make life easier for the companies (although they can send one if they want - see the $0.26 one mentioned). Same thing with 1099-MISC forms for independent contractors - the threshold is $600 for the company to have to send you a form, but you still have to claim any income you earn even if it was less than $600. (Now, the odds of getting caught not reporting either are lower since the IRS (probably) doesn't know you earned it, just like they probably won't catch someone not reporting the $5 they won from a scratch-off lottery ticket, but that's the rules.)

[winemaker06]

Jan 19, 2013 21:43:59 GMT -5 delawarejen said:

Jan 19, 2013 21:19:31 GMT -5 letsgetweird said:

Delaware, I thought you didn't have to report if it's under $10?

Nope. You have to report all income.  Just because they don't report it doesn't mean that you don't have to count it. It's just to make life easier for the companies (although they can send one if they want - see the $0.26 one mentioned). Same thing with 1099-MISC forms for independent contractors - the threshold is $600 for the company to have to send you a form, but you still have to claim any income you earn even if it was less than $600. (Now, the odds of getting caught not reporting either are lower since the IRS (probably) doesn't know you earned it, just like they probably won't catch someone not reporting the $5 they won from a scratch-off lottery ticket, but that's the rules.)

This is correct. You must report All income. If not, people would just be able to open tons of small accounts and get around it.
If you get a form because it's over $10, that is also the threshold where the bank has to also report it to the IRS, so you definitely must report that, or you're much more likely to be caught.

[explorer2001]

Also if you skip reporting something that the company reported to the IRS (which they did if you got a 1099), the IRS will most likely send you an automatic matching notice saying you didn't include income reported to them on your return and charging you the additional tax, penalties, and interest.

When I worked in public accounting and was still doing individual returns these notices were by far the most common notices we would see. Also it's a computer generated notice that checks your return against the items reported to the IRS, so they don't miss this easy stuff often.

[awkwardpenguin]

Jan 19, 2013 21:43:59 GMT -5 delawarejen said:

Jan 19, 2013 21:19:31 GMT -5 letsgetweird said:

Delaware, I thought you didn't have to report if it's under $10?

Nope. You have to report all income.  Just because they don't report it doesn't mean that you don't have to count it. It's just to make life easier for the companies (although they can send one if they want - see the $0.26 one mentioned). Same thing with 1099-MISC forms for independent contractors - the threshold is $600 for the company to have to send you a form, but you still have to claim any income you earn even if it was less than $600. (Now, the odds of getting caught not reporting either are lower since the IRS (probably) doesn't know you earned it, just like they probably won't catch someone not reporting the $5 they won from a scratch-off lottery ticket, but that's the rules.)

This is correct.  Perhaps the stupidest way I have ever spent my time was figuring out how to allocate the $1.86 in interest on a joint checking account between my return and the joint owner's return.