I have a small credit (<$.10) in my bank statement from an ACH test payment I set up to pay my rent. As part of this setup to verify my bank info the payment system credited me this amount.
How do I report this?
Thanks.
Contact the entity that set up the ACH test deposit to confirm that the 10-cent deposit you saw was from them and they are going to back it out.
If you ever run into a situation where you notice an unexpected deposit, you should leave it alone and notify your financial institution as soon as possible. It's possible that the erroneous deposit is already on someone's radar and in the process of being reversed, but not always.
@S8NpTl wrote:
Thank you, but I should clarify I'm the rentee/tenant, not the landlord.
But I think this answer will be useful for landlord/owner.
Thanks.
It's not taxable because rounding to the nearest dollar makes it zero. Or, you can treat it as a discount or rebate on your first months rent, which is also not taxable.
Small ACH test credits of a few cents such as the one you describe are typically backed out of your account once the test is completed, and aren't intended for you to keep, so they do not create income that needs to be reported.
Contact your financial institution if you receive deposits from an unknown sender.
In my case it's for setting up my debit payment to for my rent, and I don't see the test amount being debited back from my bank statement.
FWIW here's the the payment service:
Yardi Penny Test ACCTVERIFY
Should I enter the small amount as - Other income? if I don't see the debit anywhere?
Thank you!
You can include it in the total rental income received for the tax year. It's not going to make one penny of difference to your tax liability. You can also withdraw it, and return it to your tenant.
Thank you, but I should clarify I'm the rentee/tenant, not the landlord.
But I think this answer will be useful for landlord/owner.
Thanks.
Contact the entity that set up the ACH test deposit to confirm that the 10-cent deposit you saw was from them and they are going to back it out.
If you ever run into a situation where you notice an unexpected deposit, you should leave it alone and notify your financial institution as soon as possible. It's possible that the erroneous deposit is already on someone's radar and in the process of being reversed, but not always.
@S8NpTl wrote:
Thank you, but I should clarify I'm the rentee/tenant, not the landlord.
But I think this answer will be useful for landlord/owner.
Thanks.
It's not taxable because rounding to the nearest dollar makes it zero. Or, you can treat it as a discount or rebate on your first months rent, which is also not taxable.