Do I need to report interest less than $10 to IRS and indicate on 1040?

Forum|Forum|6 years ago
May 31, 2019
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Best answer by TomYoung

Yes. Although payers don't have to provide a 1099-INT for amounts under $10 that doesn't relieve you of the obligation to report it.

Just report it "as if" you received a 1099-INT. There's no problem reporting it this way. If you look at Schedule B there's nothing there that says "this was reported on a 1099-INT." It's just the payer's name and the dollar amount.

Tom Young

TomYoungAnswer

Employee

Yes. Although payers don't have to provide a 1099-INT for amounts under $10 that doesn't relieve you of the obligation to report it.

Tom Young

gandrews89129

Employee

I hope the previous respondent doesn't do anyone's taxes!! If a financial institution (and I've worked for several) is not required to report any interest under $10 to the IRS why would a taxpayer be required to report it! That is just ludicrous! Where would the IRS get the information from? Obama? Seriously, that would make financial institutions party to tax evasion and would put citizens at risk of audits, and would leave banks subject to fines. Are you kidding me Mr Tom Young? YOU DO NOT REPORT INTEREST earned under $10 period, because the banks do not report it. And it is NOT AGGREGATE it is PER ACCOUNT. If you have 3 savings accounts and each earned $9.99 cents, you DO NOT REPORT IT-PERIOD!

phaser1

This has been addressed by Tom (?) already, but to not put too fine a point on it, what you are suggesting is against the law. Yes, you might not get caught, but you would be breaking the law not reporting interest income of any amount.

13thAmendment

Technically yes.

It would take a really ornery tax agent to charge you with tax evasion. And then a really ornery tax agent's supervisor to keep pushing it.

They have bigger fish to fry IMO.

SharonD007

Yes, even though you may not have received a 1099-INT, you are still responsible for reporting the income. For further information, review the TurboTax Help articles: What if I didn't get Form 1099-INT from my bank? and Filing Tax Form 1099-INT: Interest Income.

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