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How do I record small deposits (e.g. $0.05, $0.07) as a result of bank verification for purposes of accounting? As income? Negative expenses?

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up vote 4 down vote accepted

If they don't withdraw it back (some institutions do), then you can write it down as income. Categorizing it as "interest income" seems the closest fit to me.

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I guess that makes sense. Thanks! – Jake Petroules Jul 16 '12 at 4:57
Adding update: I opened an account last year, and the verification amounts weren't withdrawn. They ended up being added to my 1099-INT from that institution, so I guess the banks treat it as interest as well. – littleadv May 22 '13 at 18:20
If they do pull it back out, call the withdrawl interest paid. Of course the fact is that these small amounts make no practical difference, but. – keshlam Nov 6 '15 at 5:46
If they pull it back out then there's no income and no expense. It's a reversed transaction. – littleadv Nov 6 '15 at 7:10

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