How do I file interest from IRS without 1099?
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plastiCup
Returning Member

How do I file interest from IRS without 1099?

Hi!

 

I have a question about filing the interest for this year's tax.

 

Last year I was filing my tax in June and after that I received a interest from IRS from the deposit, and it's less than $10, so I don't receive a 1099-INT. (The interest is  more than $5)

 

And in last year, I also filed a previous year's tax for state, and I received interest from the check, which is less than 40 cents

 

I also have a saving account and the interest from it is less than 20 cent, so I don't receive a 1099-INT from the bank either.

 

I wonder in this case, how do I file these interest to turbotax?

11 Replies
ErnieS0
Employee Tax Expert

How do I file interest from IRS without 1099?

The IRS allows you to round off dollars and TurboTax does not use cents so you can ignore the checks for 20 and 40 cents. Both round to $0.

The IRS says to round off numbers, drop amounts under 50 cents and increase amounts from 50 to 99 cents to the next dollar. For example, $1.39 becomes $1 and $2.50 becomes $3.

 

As for the $5, it may or may not change your taxes. The IRS tax table is divided into $50 increments so adding $5 will probably not change your taxes unless you are near the line.

  • Find your 2019 return.
  • On Form 1040, look at line 11b Taxable Income. If you add $5, does the number go past 0 or 50? For example, if taxable income was $10,900, adding $5 would not change the tax because $10,005 is less than $10,050, the next tax line. If taxable income were $10,046, it would change the tax because adding $5 would make taxable income $10,051, which is a new tax line. In that case you should file an amended return.
  • You can check the 2019 IRS tax table to see if your interest will change your tax.

If you need to amend your return, you can download our 2019 amend software.

 

For help amending see How do I amend a 2019 return in TurboTax?

plastiCup
Returning Member

How do I file interest from IRS without 1099?

Thanks for the answer Ernie.

 

In this case, I wonder if you know where I should add that Federal IRS interest in turbotax for this year (2020)?

 

I also received the 1099-G from the state revenue, and I see that couple of cents are being omitted. However it was for the tax year 2017 (As I mentioned, I filed prior year's tax in 2020 also).

 

I wonder if the above document will make impact also?

DawnC
Employee Tax Expert

How do I file interest from IRS without 1099?

If the cents were omitted on a previous year's 1099-G, it is doubtful that it would have any effect on your tax position.   You only need to report interest you received in 2020 on your 2020 tax return.  Anything you received in 2017, 2018, or 2019 has to be reported on that year's tax return.  You file one tax return for each tax year and you can't report income from one year on a different tax year's return.   If you need to change the interest you received in 2017, that would need to be done as an amendment to your 2017 tax return.  

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VolvoGirl
Level 15

How do I file interest from IRS without 1099?

Enter interest from the IRS like a 1099Int and put the amount in box 1.

Enter a 1099-Int  under

Federal on left

Wages & Income at top

Interest and Dividends

Interest on 1099INT - Click the Start or Revisit button

 

Put the interest amount in box 1

 

For 1099G.  Is it for a state tax refund?  A State Tax Refund is taxable if you itemized deductions on that prior year's federal return and took a deduction for state income taxes instead of the sale tax.  You got a deduction benefit for it so now you have to include it as income. If you took the standard deduction it is not taxable and you don't need to report it.

plastiCup
Returning Member

How do I file interest from IRS without 1099?

I guess the original post was not clear...

 

In year 2020, I filed the tax for tax year 2019 electronically and  for tax year 2017 on paper. In late 2020 I received the check from State for the tax year 2017 return. I also received the interest from Fed. IRS for tax year 2019 return.

 

However, I forgot to cash the check in 2020, and in 2021, I received the 1099-G from State, which:

1. Shows Tax Year 2017

2. Shows the amount that is omitting the interest (since the interest is too small).

 

Since I have already amended the tax year 2018 tax, and from your answer here, my questions are:

1. In 2017, 2018, 2019 I was using standard deduction, do I still need to do amendment to them?

2. If I am choosing Standard deduction this year, do I still need to report the interest from State?

3. If the interest from bank and from State are so small that they get rounded to 0, where should I input the interest from Fed IRS, on Turbotax?

plastiCup
Returning Member

How do I file interest from IRS without 1099?

Thank you for the answer. Yes the 1099-G was from the State, for tax year 2017.

 

I wonder besides box 1, is there anything else I will need to enter for the 1099-Int?

 

I plan to do a standard deduction this year, does it mean it this case 1099-G for tax year 2017 (received in 2020) does not need to be included?

 

DawnC
Employee Tax Expert

How do I file interest from IRS without 1099?

If you have taken the standard deduction in all of those year, the income on the 1099-G for state tax is not going to be taxable, so you do not need to amend for that or enter it on your 2020 tax return.   And you enter whatever is on the 1099-INT.  If there are only entries in Box 1, then that is all you need to enter.  

 

Do I need to report the state or local refund I got last year? Is it taxable?

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plastiCup
Returning Member

How do I file interest from IRS without 1099?

Thanks for the answer Dawn, then the only issue I have here would be that from the Fed. IRS. Since I filed the Tax year 2019 tax in June last year, I received the interest, but I do not receive the 1099-INT as the interest is less than $10.

 

In this case does that mean I will only need to input box 1 (the amount), and no other information? How do IRS know that it is an interest from them?

ToddL99
Employee Tax Expert

How do I file interest from IRS without 1099?

Enter the interest amount in Box 1 of the Interest on 1099-INT interview, and in the "Received from" box, put "US Treasury".

 

Since the IRS did not generate a Form 1099-INT (for you or themselves), they aren't going to think you made an error if they don't see it on your tax return. 

plastiCup
Returning Member

How do I file interest from IRS without 1099?

Thanks Todd, so only box 1 and the received from part, no other information needs to be input correct?

(Just want to make sure since there are a lot of boxes on a "As-if" 1099-INT)

 

LinaJ2020
Employee Tax Expert

How do I file interest from IRS without 1099?

You will report IRS interest as if it is reported on a Form 1099-INT.  Here are the steps:

 

In TurboTax online,

  • Sign into your account and select Pick up where you left off
  • At upper right corner, in search box, type in 1099int then Enter 
  • Select "Jump to 1099int"
  • Follow prompts
  • Enter the Institution ( Internal Revenue Service )as Receives from
  • Enter your interest in Box 1 and any other information if provided. 

For those amounts less than 50 cents, you do not need to report. 

 

For the year of 2020, the interest payment most likely is due to the IRS 's delay on last year's filing deadline to July 15. The new deadline was related to COVID-19 and is considered as a disaster-related postponement. As a result, the IRS is required by law to pay interest calculated from 4/15, the original April filing deadline. In order to get an interest payment , the taxpayer must have filed their 2019 tax returns by July 15, 2020.  For details, click here: IRS interest

 

@plastiCup

 

 

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