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Level 1

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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Level 1

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.

The credit union is not required to send a form if the amount is less than $10. You, however are required to report all income, no matter how small, and regardless of whether you got a form or not.
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.
12 Replies
Level 1

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.

The credit union is not required to send a form if the amount is less than $10. You, however are required to report all income, no matter how small, and regardless of whether you got a form or not.
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.
Level 1

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.

For example, if you earned $100 in interest from a bank and $9 in interest from a credit union, although the credit union did not send you a 1099-int form, the IRS states that you are required to report ALL interest earned that is $10 and up. Therefore, you are required to report the $109 interest. If you earned less than $10 in interest total (from all your financial institutions) then you are not required to report the less than $10 interest earned.
Level 1

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.

So you don't have to report less than $10?
Level 11

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.

@nanajmd
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
Level 1

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.

Thanks VolvoGirl, I stand corrected. I was referencing an old H&R Block standard.

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>
Level 1

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.

Ok, but the Bank pays tax from interest, how do I know which numbers I should put to the form?
ufd
Level 1

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.

If I'm not using TurboTax to file my taxes, and reporting with the paper forms, how do I report interest/dividends I didn't receive a 1099-int for [b/c it was too small for bank to report]? I add it to my total income from interest, but where or how do I let the IRS know where the additional small amount of interest/dividends came from?
Level 11

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.

Unless you have to include a Schedule B you don't need to say where.  Even on Schedule B you could just say "Interest less than $10" or "Other Interest"
Level 1

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.

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.