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Level 3
posted Feb 10, 2023 8:14:06 PM

I have $.41 in escrow interest for my mortgage in 2022, do I report that as income in TurboTax under 1099-INT even though I did not earn $10 dollars of interest?

I believe that all interest is reportable even if not 1099-INT form is received. Thus, I want to report what I found for escrow interest in the statements for 2022.

0 3 319
3 Replies
Level 15
Feb 10, 2023 9:03:13 PM

It rounds to zero so doesn’t have to be reported. 

Level 15
Feb 10, 2023 9:23:59 PM

You are technically correct that you should report the interest, even though the bank is not required to issue a 1099–INT unless the interest amount is more than five dollars.  However, as mentioned, the IRS encourages taxpayers to round figures to hold dollar amounts, and since $.41 rounds down to zero, you can leave the interest off your tax return.

Level 3
Feb 10, 2023 10:29:38 PM

Is the reporting interest required by a bank savings and loan a row and etc. for a 1099 INT $5 or $10? I thought it was $10. I am a novice but do read the fine print. I know everything is rounded up or down but I still want to report as a precaution and for future interest could be acquired for this account and other bank accounts.

By law regardless of the amount of interest, it is still reportable regardless if it is rounded to zero.

 

I still plan to report.