Do you have to report less than $10 in bank interest on your tax return as income?

Discussion in 'Tax' started by Jones, Feb 26, 2004.

  1. Jones

    Jones Guest

    My credit union never sent me 1099 form. I did my taxes
    anyway and reported the $9 I made in bank interest for 2003
    and mailed off my state and fed returns.

    I called my credit union today and ask them if they could
    mail me a 1099 form so that I could have it for my records.
    They told me that for anything under $10 they don't mail
    1099 forms because they are not necessary that I did not
    need to report anything under $10 on my tax returns.

    Is this true?

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    Jones, Feb 26, 2004
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  2. Jones

    A.G. Kalman Guest

    Re: Do you have to report less than $10 in bank interest on your

    Jones wrote:

    > My credit union never sent me 1099 form. I did my taxes
    > anyway and reported the $9 I made in bank interest for 2003
    > and mailed off my state and fed returns.
    >
    > I called my credit union today and ask them if they could
    > mail me a 1099 form so that I could have it for my records.
    > They told me that for anything under $10 they don't mail
    > 1099 forms because they are not necessary that I did not
    > need to report anything under $10 on my tax returns.
    >
    > Is this true?


    Half true. Half false.
    A 1099 is not required if under $10 of interest.
    A taxpayer must report all income whether an information
    form is received or not.

    --
    Alan
    http://taxtopics.net

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    A.G. Kalman, Feb 29, 2004
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  3. Jones

    Wcm7315 Guest

    > I called my credit union today and ask them if they could
    > mail me a 1099 form so that I could have it for my records.
    > They told me that for anything under $10 they don't mail
    > 1099 forms because they are not necessary that I did not
    > need to report anything under $10 on my tax returns.
    >
    > Is this true?


    Partly. They don't have to send it, but you DO have to
    report it. Will

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    Wcm7315, Feb 29, 2004
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  4. Jones

    D.F. Manno Guest

    "Jones" <> wrote:

    > My credit union never sent me 1099 form. I did my taxes
    > anyway and reported the $9 I made in bank interest for 2003
    > and mailed off my state and fed returns.
    >
    > I called my credit union today and ask them if they could
    > mail me a 1099 form so that I could have it for my records.
    > They told me that for anything under $10 they don't mail
    > 1099 forms because they are not necessary that I did not
    > need to report anything under $10 on my tax returns.
    >
    > Is this true?


    No. You're still required to report the interest on your
    returns.

    --
    D.F. Manno

    "They that can give up essential liberty to obtain a little
    temporary safety deserve neither liberty nor safety."
    (Benjamin Franklin)

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    D.F. Manno, Feb 29, 2004
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  5. Jones

    jw Guest

    Re: Do you have to report less than $10 in bank interest on your

    Jones at wrote:

    > My credit union never sent me 1099 form. I did my taxes
    > anyway and reported the $9 I made in bank interest for 2003
    > and mailed off my state and fed returns.
    >
    > I called my credit union today and ask them if they could
    > mail me a 1099 form so that I could have it for my records.
    > They told me that for anything under $10 they don't mail
    > 1099 forms because they are not necessary that I did not
    > need to report anything under $10 on my tax returns.
    >
    > Is this true?


    No, it is not true.

    2003 Your Federal Income Tax, page 60, says:

    "Report on your tax return the total amount of interest
    income that you receive for the tax year. This includes
    amounts reported to you on Form 1099-INT and amounts for
    which you did not receive a Form 1099-INT."

    You did it right.

    John Burtch, CPA

    --
    The above PRIVACY.NET e-mail address is for spam avoidance
    purposes. Please reply to the newsgroup or to

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    jw, Feb 29, 2004
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  6. Jones

    LoTax Guest

    The part where they told you "that I did not need to report
    anything under $10 on my tax returns," was not true. It's
    taxable and needs to be on your tax return. Others will no
    doubt point out the 1099 reporting rules and how they are
    different from the 1040 reporting rules.

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    LoTax, Feb 29, 2004
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  7. Jones

    LoTax Guest

    The part where they told you "that I did not need to report
    anything under $10 on my tax returns," was not true. It's
    taxable and needs to be on your tax return. Others will no
    doubt point out the 1099 reporting rules and how they are
    different from the 1040 reporting rules.

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    LoTax, Feb 29, 2004
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  8. Re: Do you have to report less than $10 in bank interest on your

    Jones wrote:

    > I called my credit union today and ask them if they could
    > mail me a 1099 form so that I could have it for my records.
    > They told me that for anything under $10 they don't mail
    > 1099 forms because they are not necessary...


    The law does not require the entity paying the interest to
    file a Form 1099 if less than $10 was paid during the year.
    Not quite what they said but close enough to give them a
    passing grade.

    > that I did not
    > need to report anything under $10 on my tax returns.


    Oh well, they are batting .500 only. Nope, this answer is
    wrong. IRC Section 61, which says you are taxed on all
    income from whatever source derived, has no "exception" for
    interest of less than $10--and there's no other exception in
    Title 26 of the US Code (otherwise known as the Internal
    Revenue Code) that excludes it from being included in
    income.

    So, yes, you are required to report that $10. The only
    issue is that the IRS won't have to be informed by the bank
    that you received it.

    --
    Ed Zollars, CPA
    Phoenix, Arizona

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    Ed Zollars, CPA, Feb 29, 2004
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  9. Jones

    Nan Eklund Guest

    In theory you are required to report every dollar. In
    theory. Lots of clients don't mention interest earned if
    under $10 - and lots of preparers don't either. If it comes
    into my office, I list it but it seldom makes any difference
    to your tax....may make a difference to your conscience.

    Nan, EA in LA

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    Nan Eklund, Feb 29, 2004
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  10. Jones wrote:

    > My credit union never sent me 1099 form. I did my taxes
    > anyway and reported the $9 I made in bank interest for 2003
    > and mailed off my state and fed returns.
    >
    > I called my credit union today and ask them if they could
    > mail me a 1099 form so that I could have it for my records.
    > They told me that for anything under $10 they don't mail
    > 1099 forms because they are not necessary that I did not
    > need to report anything under $10 on my tax returns.


    THEY don't need to report anything under $10 on the
    1099-INT. YOU need to report it on 1040 line 8 or 1040
    Schedule B, as appropriate.

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    Arthur L. Rubin, Mar 1, 2004
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  11. Jones

    Brew1 Guest

    "Jones" <> wrote:

    > My credit union never sent me 1099 form. I did my taxes
    > anyway and reported the $9 I made in bank interest for 2003
    > and mailed off my state and fed returns.
    >
    > I called my credit union today and ask them if they could
    > mail me a 1099 form so that I could have it for my records.
    > They told me that for anything under $10 they don't mail
    > 1099 forms because they are not necessary that I did not
    > need to report anything under $10 on my tax returns.
    >
    > Is this true?


    It is true that a 1099-int isn't generated for less than $10
    in interest, but it is incorrect (to tell you) that you do
    not need to report it.

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    Brew1, Mar 1, 2004
    #11
  12. Re: Do you have to report less than $10 in bank interest on your

    A.G. Kalman wrote:
    > Jones wrote:


    >> My credit union never sent me 1099 form. I did my taxes
    >> anyway and reported the $9 I made in bank interest for 2003
    >> and mailed off my state and fed returns.
    >>
    >> I called my credit union today and ask them if they could
    >> mail me a 1099 form so that I could have it for my records.
    >> They told me that for anything under $10 they don't mail
    >> 1099 forms because they are not necessary that I did not
    >> need to report anything under $10 on my tax returns.
    >>
    >> Is this true?


    >
    > Half true. Half false.
    > A 1099 is not required if under $10 of interest.
    > A taxpayer must report all income whether an information
    > form is received or not.


    But not less than a dollar! Heh heh heh!!

    C$,
    HL

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    Harlan Lunsford, Mar 1, 2004
    #12
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