Prosper Closed Account

[64RedStang]

I had a Prosper account which started at $500, consistency lost money and I closed it in March 2020, withdraw less than $500.  Prosper didn't send any tax documents as the interest was less than $10.  I don't know if I have to do anything with this on this year's taxes, could use some help.

[DavidD66]

Was your Prosper account a brokerage account, and did you make any sales transactions in 2020?  If so, you should have received a Form 1098-B so that you can report the sales on your tax return.  If you had sales, but didn't receive a 1099-B, you should contact Prosper about getting one.  If you didn't have any investment sales in 2020, then you wouldn't have anything to report.

[64RedStang]

Thank you for your reply, sorry but I am really ignorant on this process, one of the reasons I got out of it.  Not sure about the brokerage account.  I had some notes (loans) which all matured.  That is the one way I could get out of it from what I could tell.  I had $38.60 which I transferred out, signed a forfeiture agreement form.    When I asked Prosper for the tax forms they sent back "There were no tax forms generated for your account for 2020. You did not earn more than $10 in interest to generate tax forms. "

Thank you in advance for the assistance.

[ColeenD3]

Since your investment was in personal loans, and they say your interest income was less than $10, you will not get a 1099-INT. However, if you do know your amount of interest, even if it was less than $10, you would include the income on your return.

If you received less than $10 in interest from your financial institution, they're not required to send you Form 1099-INT, but you're still supposed to report the interest.

Although you didn't get a 1099-INT, report the interest in the 1099-INT section:

1. Open your return (or continue if it's not already open).
2. In the upper right menu, select and search for 1099-INT or 1099INT (lower-case also works).
3. Select the Jump to link in the search results.
4. Answer Yes to Did you receive any interest income?
   • If you see Review your 1099-INT info, select Add another 1099-INT or select Review next to the correct 1099-INT.
5. On the following screen, select I'll type it in myself or Continue.
6. On the next screen, input the required information.
7. Select Continue.
8. On the next screen, Do any of these uncommon situations apply?, select the appropriate answer and Continue.

[64RedStang]

Thank you, I will follow those instruction the best I can. I have no idea how much interest I received only that is was less than $10...

Is there a way I have to marked that this is closed so they aren't looking for it next year?