I recieved a letter from the IRS, 3 hours after filing my 2021 taxes, stating they paid me $13.90 in interest. Do I need to ammend my return? If so, how do I ammend it?

[fordtough738]

The IRS accepted my return an hour after filing so it is already in their system. Is there a threshold of what needs to be claimed for interest? Also, I claimed a 1099 INT on other interest so does that amount play into a potentional threshold? Guess I should've gone to the mailbox before doing taxes!

[DawnC]

You will need to do an amendment, but don't worry about it now.  The threshold for reporting interest is 51 cent if you are otherwise required to file a return.   If that $14 was your only income, you could ignore it since you would not be required to file a tax return.   But since you are required to file a tax return, you have to report all of your income, including tiny interest payments from the IRS.   However, it is very unlikely that the processing of your return will be held up in any way.    The IRS will process it and end up sending you a letter some time down the road.  

You have 3 year to do the amendment to add the $14; that is why I say do not worry about it right now.    They will eventually send you a letter if you don't amend before that.   The amendment software will be available at the end of February.   I will leave the instructions here so you can come back later or even after tax season and submit it.   And amendments can now be e-filed, so it should be a fairly simple process to add the 1099-INT.   

[fordtough738]

Thank you so much!

[fanfare]

I doubt very much IRS will go after you for the tax on $14.

There is no 1099-INT for interest of $10 or less.

[fanfare]

You only get one e-File of 1040-X so don't waste in haste on such a puny amount.

You might need it later for a more serious problem

[JillS56]

Before you panic over what the IRS might do, determine if the $14 is going to make a difference in the outcome.   Once you determine whether or not it makes a difference in the outcome, then what you need to do depends on whether or not you have a refund or owe taxes.    If it makes a difference and you owe taxes, I would file an amended return as soon as you know your original return is filed and pay any additional tax.    

If you are receiving a refund and you would get back less, it is possible they catch it before they issue you your refund.   If you get the full amount of the original calculation then be prepared to pay the difference when you receive a letter from the IRS.   Do not send the additional amount until the IRS sends a letter requesting the additional tax.