Do I need to file a 1099-MISC if it's only $20 worth of income?

[callingadesign]

I got a 1099-MISC from my bank for a referral bonus, and in order to include it in my return, I have to upgrade which turbotax product I'm using. And pay a ridiculous amount more than I was expecting. I just want to know if I have to include it, or, if since it's such a small amount, I can exclude it. I really don't want to have to pay almost $100 just to include it if I don't need to. But I also don't want to face any penalties from the IRS if I don't include it.

[DianeW]

Because of the amount, it would be fine to add this as interest income.  This will add it to your income for personal income tax but will have no additional taxes because the amount is below the level for self employment tax.

• To record this income while you are logged into your TurboTax account follow the steps here.
• My Account > Tools > Topic Search > Type interest income > Go
• Begin the entry for your interest income - Type Employer as the bank
• Click the screenshots attached to enlarge and view to assist you.

[callingadesign]

Diane, does that mean I'd be reporting it as a 1099int instead of a 1099misc?I just want to make sure I understand fully.

[DianeW]

Yes.  This will accurately reflect your income.  It's like a prize and that would require a Form 1040, you will not be faced with any penalties or issues by using my advice at such a low amount.