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Returning Member
posted Jan 25, 2021 6:03:02 AM

Just received 1099-INT from bank but no info on class action settlement checks. Do I still need to report it?

A few months ago I received a few settlement checks from my bank in regards to a class action lawsuit against them. The letters that came with the checks did not make mention of any interest or any money that might be owed. Then recently I got my 1099-INT from that bank and either one of them did not show up on it. I did have interest on something unrelated that has to be reported. So I'm confused on what to do. Can someone help?

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6 Replies
Expert Alumni
Jan 25, 2021 6:24:33 AM

Settlement money earns interest until you get the settlement money. The interest that is earned, must be reported to the IRS by the bank and by you, on your income tax return.

 

See Where do I enter Form 1099-INT?

 

Related information:

 

Returning Member
Jan 25, 2021 7:58:17 AM

If there's no mention of how much interest was accrued on the 1099-INT, how do I report it other than with the amount of the check? I hope I don't sound dumb, I'm really just confused.

Expert Alumni
Jan 25, 2021 8:14:41 AM

From the information you provided, "received 1099-INT", the 1099-INT form should have an amount in Box 1for the interest you received. 

 

If you didn't receive the 1099-INT form, wait until you receive it. You may also contact the bank or your legal representative for the information. 

Returning Member
Jan 25, 2021 8:16:21 AM

I did receive a 1099-INT.  The only interest that is on it is from a savings bond that I cashed.  There is nothing else on it.

Level 15
Jan 25, 2021 8:19:02 AM

If the income is more then 49 cents, you must report it.

Returning Member
Jan 25, 2021 9:18:59 AM

Okay.