Interest Income LT $10

nr · Joined: 22 Feb 2008 Posts: 2

I had two checking accounts last year and received interest on each
one. I did not receive 1099's for them but I knew the total interest
received, so I just put that on my 1040.

While at my current bank this week I asked the manager about why I
didn't receive a 1099 and she said that if one get less than $10 in
interest on an account, one does not report that. I could not find
any reference to this treatment in the 1040 instructions or on the IRS
web site.

Granted, we're not talking about a large amount, but I'm curious if
anyone else has heard this.

Archived from group: misc>taxes

Paul Thomas, CPA · Joined: 25 Aug 2007 Posts: 3094

"nr" wrote
>I had two checking accounts last year and received interest on each
> one. I did not receive 1099's for them but I knew the total interest
> received, so I just put that on my 1040.
>
> While at my current bank this week I asked the manager about why I
> didn't receive a 1099 and she said that if one get less than $10 in
> interest on an account, one does not report that. I could not find
> any reference to this treatment in the 1040 instructions or on the IRS
> web site.
>
> Granted, we're not talking about a large amount, but I'm curious if
> anyone else has heard this.

The bank is not required to report that - you are still required to report
all income from all sources, regardless of if the payer tells the IRS about
it or not.

--
Paul A. Thomas, CPA
Athens, Georgia

D. Stussy · Joined: 25 Aug 2007 Posts: 126

"nr" wrote in message@d4g2000prg.googlegroups.com...
> I had two checking accounts last year and received interest on each
> one. I did not receive 1099's for them but I knew the total interest
> received, so I just put that on my 1040.
>
> While at my current bank this week I asked the manager about why I
> didn't receive a 1099 and she said that if one get less than $10 in
> interest on an account, one does not report that. I could not find
> any reference to this treatment in the 1040 instructions or on the IRS
> web site.
>
> Granted, we're not talking about a large amount, but I'm curious if
> anyone else has heard this.

It's not in the 1040 instructions because you're supposed to report it even
if you don't get the form.

It's in the form 1099 instructions. In fact, as the threshold varies per
type of 1099 form, there's even a chart.

nr · Joined: 22 Feb 2008 Posts: 2

On Feb 22, 4:13 pm, "D. Stussy" wrote:
> "nr" wrote in message
>
> @d4g2000prg.googlegroups.com...
>
> > I had two checking accounts last year and received interest on each
> > one. I did not receive 1099's for them but I knew the total interest
> > received, so I just put that on my 1040.
>
> > While at my current bank this week I asked the manager about why I
> > didn't receive a 1099 and she said that if one get less than $10 in
> > interest on an account, one does not report that. I could not find
> > any reference to this treatment in the 1040 instructions or on the IRS
> > web site.
>
> > Granted, we're not talking about a large amount, but I'm curious if
> > anyone else has heard this.
>
> It's not in the 1040 instructions because you're supposed to report it even
> if you don't get the form.
>
> It's in the form 1099 instructions. In fact, as the threshold varies per
> type of 1099 form, there's even a chart.

I just downloaded the 1099 Instructions and it says that interest
amounts less than $10 do not have to be reported.

P. Maffia · Joined: 10 Nov 2007 Posts: 117

"nr" wrote in message @i29g2000prf.googlegroups.com...
> On Feb 22, 4:13 pm, "D. Stussy" wrote:
>> "nr" wrote in message
>>
>> @d4g2000prg.googlegroups.com...
>>
>> > I had two checking accounts last year and received interest on each
>> > one. I did not receive 1099's for them but I knew the total interest
>> > received, so I just put that on my 1040.
>>
>> > While at my current bank this week I asked the manager about why I
>> > didn't receive a 1099 and she said that if one get less than $10 in
>> > interest on an account, one does not report that. I could not find
>> > any reference to this treatment in the 1040 instructions or on the IRS
>> > web site.
>>
>> > Granted, we're not talking about a large amount, but I'm curious if
>> > anyone else has heard this.
>>
>> It's not in the 1040 instructions because you're supposed to report it
>> even
>> if you don't get the form.
>>
>> It's in the form 1099 instructions. In fact, as the threshold varies per
>> type of 1099 form, there's even a chart.
>
> I just downloaded the 1099 Instructions and it says that interest
> amounts less than $10 do not have to be reported.

The instructions mean that the PAYER of the interest does not have to issue
a 1009 for total interest paid to you if the amount is less than $10 for the
year.

It DOES NOT MEAN that you don't have to report the income on your tax
return. YOU HAVE TO REPORT IT EVEN IF THE AMOUNT WERE 1 cent.

Don Priebe · Joined: 25 Aug 2007 Posts: 574

> I just downloaded the 1099 Instructions and it says that interest
> amounts less than $10 do not have to be reported.

Correct as far as 1099's are concerned. Interest amounts of less than
$10.00 do not have to be reported ON A 1099-INT. The interest payer need
not report them to the interest receiver. The interest payer need not
report them to the IRS.

Same for dividends and 1099-DIVs. Under $10 need not be reported by the
dividend payer. However they may be if the payer so wishes. My record so
far this year is a 1099-DIV from Wal-Mart that shows a (qualified) dividend
of THREE CENTS.
--
Don EA in Upstate NY

D. Stussy · Joined: 25 Aug 2007 Posts: 126

"nr" wrote in message@i29g2000prf.googlegroups.com...
> On Feb 22, 4:13 pm, "D. Stussy" wrote:
> > "nr" wrote in message
> >
> > @d4g2000prg.googlegroups.com...
> >
> > > I had two checking accounts last year and received interest on each
> > > one. I did not receive 1099's for them but I knew the total interest
> > > received, so I just put that on my 1040.
> >
> > > While at my current bank this week I asked the manager about why I
> > > didn't receive a 1099 and she said that if one get less than $10 in
> > > interest on an account, one does not report that. I could not find
> > > any reference to this treatment in the 1040 instructions or on the IRS
> > > web site.
> >
> > > Granted, we're not talking about a large amount, but I'm curious if
> > > anyone else has heard this.
> >
> > It's not in the 1040 instructions because you're supposed to report it
even
> > if you don't get the form.
> >
> > It's in the form 1099 instructions. In fact, as the threshold varies
per
> > type of 1099 form, there's even a chart.
>
> I just downloaded the 1099 Instructions and it says that interest
> amounts less than $10 do not have to be reported.

That means do not have to be reported on a 1099. They still have to be
reported on the 1040.

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