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If I received less than $10 of interest from my credit union, do I need to declare it? It looks like they are not required to send out a form unless it is over $10.
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The IRS allows rounding, so an amount of 49 cents or less rounds to 0 and is not reportable. An amount of more than 49 cents is reportable and taxable.
You can find the amount of interest that your credit union paid on your year end statement. You can report that as if you got a 1099-INT (although credit unions call it a dividend, it is actually interest). Just put the credit union name as the payer and put the interest in Box 1.
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The post from Sandyd5 is wrong. You must report all your income no matter how small. You must report all your interest that's $1 or more. Even if the total of all your accounts is less than $10.
Enter it like you did get a 1099INT
Federal Taxes tab
Wages & Income
Choose Explore on my own or I'll choose what to work on (if it comes up)
Interest and Dividends
Interest on 1099INT - Click the Start or Update button
Put the interest amount in box 1
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Here is the 2014 IRS publication to reference on page 5
<a href="http://www.irs.gov/pub/irs-pdf/p550.pdf" rel="nofollow" target="_blank">http://www.irs.gov/pub/irs-pdf/p550.pdf</a>
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I would say to declare it. The software should recognize that it's under a certain amount and it won't affect the end result (you won't be taxed on it).
The reason it matters is that you could have accounts with other banks/credit unions that have also issued interest/dividend payments. It's the accumulation of the accounts that matter. So if the aggregate meets a certain level, then you are taxed in a certain way.
Think of a yard sale. If you sell one $200 item, it doesn't really matter. You're not going to get taxed on it and submitting it is more for the completeness of your records. However, if you have 100 yard sales and sell the item at each, then yes, you would be taxed on the $20,000. It's the accumulation/aggregate over the year that the IRS cares about.
To ensure that people file their taxes correctly and don't slack on the math, the IRS has made it mandatory to file all sources of income, no matter the amount. However, just because you file it, does not mean you will be taxed on it.
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No you do not need to claim it, since the amount is under the threshold for claiming it.
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YOU MUST REPORT ALL INTEREST NO MATTER WHAT IT IS, WHETHER YOU GET A 1099 OR NOT. IT IS NOT THAT HARD OF A CONCEPT TO UNDERSTAND. SHEESH
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yes you do. i don't know where you people get your mis-information at.