I received an Auto Insurance policy refund from Allstate on 8/24/2023 of $1583.30 by mail. The accompanying letter said it was one or more policy periods due to a processing error. Also said the check was for the refund amount plus interest, but there was no indication of what portion of the $1583.30 was the refund and what portion was the interest. Now I receive a Form 1099-INT from Allstate for interest income of $351.67, which supposedly was part of my refund check. I called Allstate to ask why the interest amount was so high. They told me to disregard the Form 1099-INT, because they should not have sent those out for any interest amounts under $600. They also said they will be correcting this with the IRS. This sure sounds to be incorrect and strange to me. I feel that I still need to report this interest income on my taxes, even though Allstate states they are amending the Form 1099-INT with the IRS. Yeah, but now they already know. Like they will just forget about it? I don't think so. What do you think? Should I still report the interest income, even though the only way I was informed about the amount, was through this supposedly "issued in error" Form 1099-INT?
