Do you report interest from accounts that are under the limit?

[lameri]

Hello!

I have:

1. A checking account that for 2021 didn't generate a 1099-INT. The bank said it was because it was under $10. 
2. A brokerage account that generated a 1099-composite even though it was under $10. The bank said it is because the minimum to generate a 1099-composite is $0.01

In particular, this is how the bank explained it: "It is related to the account type itself. Bank accounts only get 1099-INT. The 1099-INT is only issued to clients that earned interest equal to or greater than $10 on an account per the IRS rules. The 1099 Composite is issued for investment accounts. Those are any amount that is $0.01 or more per the IRS rules. Two different accounts types, two different IRS rules."

My question is what to put in my tax return. Logic would tell me to report the interest from the brokerage account (which is over $0.01 and generated the pertinent document) but not from the checking account (which was under $10 and didn't generate a doc). Would that be appropriate? (In fact, TurboTax is very clear about "enter what you got from 1099-INT" so I could not be able to say that the checking interest is something I got from a 1099-INT).

Thanks.

[FangxiaL]

Report the interest income regardless of whether you received a 1099-INT form. If the interest income is under $0.50, ignore it. Generally, IRS won't bother you if you only omitted under $10 interest income, but if you also omitted other income, the omitted interest income will be listed together with whatever else is omitted. I have seen $2.00 listed with other unreported income in an IRS notice. 

[MudHenMike]

Yes, it's best to report all interest even if you don't get a 1099-INT. You can create one manually and just enter the interest amount from your December statement. With interest rates on savings accounts so low, it's common for the amount to be less than $10 where the bank won't send you the form. Just keep the December statement in your file so you know where the number came from.

[VolvoGirl]

You must report all your income no matter how small, even $1 of interest that you don't get a 1099 for.  Enter interest received like a 1099-Int under

Federal Taxes tab

Wages & Income

Interest and Dividends

Interest on 1099INT - Click the Start or Update button

All you need to enter is the bank name or who paid you and put the amount in box 1.

Same for Dividends. Enter it like you did get the 1099-Div and put the amount in box 1a.  You might have to call and ask them if it is qualified for box 1b.  Maybe you can look at your quarterly statements and tell.