How do I report interest from a 1099-INT less than $0.50? No 1099 generated due to less than $10 interest earned. Doesn't this round down to $0? Is zero a red flag?

It is my understanding based on research that all interest income must be reported (1099-INT and 1099-DIV) even if less than $10. But $0.49 or less, which rounds to zero, seems like a pointless and could be mistaken as an error rather than a diligent and thorough effort to report. Any advice would be appreciated!

3942

Employee Tax Expert

Feb 7, 2025 7:31:34 AM

Interest in the amount below .50 cents would round down to zero. This doesn't have to be reported on your tax return and isn't considered a red flag.

Level 15

Feb 7, 2025 7:32:29 AM

The IRS rounds amounts. Do not report amounts less than 50 cents.

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How do I report interest from a 1099-INT less than $0.50? No 1099 generated due to less than $10 interest earned. Doesn't this round down to $0? Is zero a red flag?