8

One of my bank accounts earned $1.50 for the entire year. Because the amount is under $10 they did not send a 1099-INT form.

Is this bank policy or IRS policy? Does that $1.50 need to be reported?

I'm not worried about the difference that this small amount makes on my taxes bur rather what is legally required.

9

IRS doesn't require 1099 to be filed for payments of less than $10. It is, however, taxable income.

The fact that 1099 wasn't filed with the IRS doesn't affect your tax liabilities.

If for example you have a private loan (say to a family member) and get paid interest on it, the payer will also probably not file 1099-INT with the IRS. However the interest you're being paid is taxable income to you and should be reported on Schedule B.

  • 2
    There's no need for schedule B unless your interest or dividends go over $1500. – jonsca Mar 27 '14 at 11:01
  • 1
    @jonsca there are additional requirements to when Schedule B is required, not just the $1500. But in any case, even without Schedule B, you still put the amounts on your 1040 (line 8). I suggest always attaching schedule B - no harm in having it. – littleadv Mar 27 '14 at 16:58

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