Surprisingly, my bank issued 1099-INT form for 49 cents of interest. IRS rounds up or down all #s and so do all tax programs. So 49 cents will round down to 0 dollar. Do I just enter this bank as payer and enter 0.49 in Box 1 Interest Income and let the program round down to 0 dollar, and just report 0 dollar to IRS? I don't see there's a way to report it as 49 cents, and since 49 cents of interest is being furnished to IRS, and I think I'm required report even if it rounds down to 0 dollar. Anyone know how to handle this? Thank you.
Since the interest is less than $0.50 you can disregard the interest and it would not be entered on your tax return.
So I can simply not report 49 cents of interest earned? Bank issued 1099-INT for this 49 cents, and it has the standard warning, "This is important tax information and is being furnished to the IRS. If you are required to file a return, a negligence penalty or other sanction may be imposed on you if this income is taxable and the IRS determines that is had not been reported." I believe IRS has or used to have a policy to not ask about amount under $20. I would feel more comfortable reporting 49 cents as rounded-down 0 dollar in Box 1 Interest Earned instead of not reporting it. Anyone know what would happen if I report 49 cents rounded down as 0 dollar? Thank you.