No 1099 for less than $10 ?

[Delawaredave5]

Kids and I have several small bank accounts that earn little / no interest.

I guess banks do not have to issue 1099's if amount is less than $10 - makes sense.

I'm assuming I also should not bother finding/reporting same small amounts ? (I guess I could find interest on a monthly statement).

OK to ignore these ?

Thanks !

 

[jim747]

I was looking for a 1099 on a small checking account so called my bank and learned they do not issue them if under $10. My interest was a whopping 93 cents We did not include it in our 2012 income.

 

[heeyy_joe]

Yes.

 

[David1961]

There is a threshold under which a 1099 is not required. Not sure if it is $10, but that sounds about right.

 

[LOL!]

It won't cost you much to report it, but if you run for political office or otherwise do something where you will have your background checked I think it would be wise to report it and to have had it reported in the past.

My 2012 interest is on my December statements as YTD. I think it was $2.63 or thereabouts.

 

[scrabbler1]

I assume we are talking about a single 1099 applicable to a single type of account such as a bank account. I say this because my friend whose taxes I prepare received seven 1099 forms, some of which listed several different types of accounts and investments such as taxable interest, tax-exempt interest, ordinary dividends, qualified dividends, and cap gain distributions. Some of the amounts shown for these categories were for less than $10; one of them had an amount of $0.01 although in both cases there were ordinary dividends of at least $300.

I created a table within a spreadsheet which listed each institution's 1099 form(s) along with the amount for each type of income.

 

[Walt34]

I suppose it depends on the institution - DW gets one for $8 and some change every year.

 

[kaneohe]

Is interest of less than $10 taxable? - Yahoo! Answers

You can google and find many more......all I've read have the same answer.

 

[dmpi]

The answer is you won't get a 1099 for accounts with less than $10 of interest. And these days you can have a $1000 account still be under the $10. As far as paying taxes you are suppose to pay tax on it even if its under $10. But my memory is far better for deductions vs. income. Without a 1099 to jog my memory there's no way I can remember.

 

[Chuckanut]

Given today's interest rates on things like CD's and passbook accounts, earnings under $10 are not that uncommon. I had several accounts that did not bother to report earnings on a 1099. The [-]War On Savers[/-] Fed's financial plan definetly has its winners and losers.

 

[Tyro]

My recollection (which may be faulty) is that, though the wording was ambiguous, taxpayers are required to report ALL income, period. For all the 5 extra minutes it took, we've always reported those "penny accounts". It never increased our tax bill, and we've never lost any sleep over it.

Of course, I spoze you could always just call the IRS and ask them....

Tyro

 

[KingB]

Our 1099 from our bank included the interests earned from our checking accounts which are less than a dollar. Since they are already on my Quicken, it is not a problem importing them into my tax return.

 

[FinancialDave]

The answer is you won't get a 1099 for accounts with less than $10 of interest. And these days you can have a $1000 account still be under the $10. As far as paying taxes you are suppose to pay tax on it even if its under $10. But my memory is far better for deductions vs. income. Without a 1099 to jog my memory there's no way I can remember.

This is the correct answer -- If ANY ACCOUNT has interest of 50 cents or more it MUST be listed as income in the interest section of your taxes!

fd