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posted Mar 22, 2022 9:54:31 PM

Do i have to report all interest income even if it is less than 3 dollars?

I have several accounts that i have received small amounts of interest income. Do i have to report all interest income even if it is less than 3 dollars?

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1 Replies
Level 15
Mar 22, 2022 10:07:46 PM

the tax laws make no exceptions for reporting small amounts except for rounding.  if your taxes are figured using the tax tables adding $3 might not change your tax at all.   if you omitted the $3, it's unlikely the IRS would send you a bill even it did increase your taxes.  However, it's a bad habit to get into. $3 this year $50 next year.  become rich maybe $100,000 in that year.