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Level 7

How to report $0.23 bank interest income?

Received two 1099-INT forms from two banks early this year. Bank A: $100 and Bank B: $0.23 (Yes, they did send 1099-INT for only $0.23!)

 

Now my accountant says while $100 from Bank A is not a problem, he is unable to put on the form the $0.23 from Bank B when filing my tax return, since every figure is rounded off to an integer in the e-file software. He cannot input 0.23 or zero in system.

 

So will I get trouble if I only report $100 interest from Bank A and totally fail to report the $0.23 from Bank B? I guess the IRS matching system will find this? Do IRS catch people for only 23 cents unreported income, which is even lower than the postage to be paid for a collection letter to be sent?

 

What if I put $1.00 from Bank B? This is a little higher than the actual one but will be allowed to be inputted in the system. But will IRS inquire why figure I report is higher than the 1099-INT received from the bank and ask for my bank account statement?

 

Any recommendations for how to deal with this? Thank you.

2 Replies
Level 14

How to report $0.23 bank interest income?

don't worry about it.... even if you are in the top tax bracket, the tax is only 8 cents!  IRS rounds everything, so not to worry, 

 

Employee Tax Expert

How to report $0.23 bank interest income?

NCPerson is correct, please don't worry about it. The 23 cents gets round down to zero, so it won't be reported and IRS will not issue any letters for it.