Received a 1099-INT from CA Franchise Tax Board for nominal interest paid to me because they were late in issuing my tax refund in 2022 (re FY21). Do I file this?

[charlottechepik]

The form however says "This form is for your records - do not file with your tax return - exception: if there is an amount in box 4, attach a copy of this form to your federal tax return'. I assume this doesn't need to be filed? However, ti's a form 1099-INT and it also says that it is being furnished to the IRS.

[MonikaK1]

The instruction you saw to attach Form 1099-INT to your return if there is an entry in Box 4 was intended for taxpayers who are filing their tax returns by mail.

If you are e-filing with TurboTax, enter the information from Form 1099-INT in that area of the Wages & Income section. The information will be transmitted to the Franchise Tax Board if you e-file your California return.

For more information on e-filing versus mailing, see this TurboTax help article.

[charlottechepik]

Thanks for the response! I just got off the phone with customer service help and got directly conflicting information. She said that 1099-INTs only need to be filed if it's from a financial institution and over $10, and consequently I don't need to lodge this 1099-INT??

[HelenC12]

Yes, you need to enter the interest income on your income tax return.

• When you receive interest income of less than $10, the CA Franchise Tax Board is not required to give you a 1099-INT form. 
• However, all income needs to be reported to the IRS. Enter the interest "as if" you received form 1099-INT.

To enter your interest from the CA Franchise Tax Board:

1. Sign in to your TurboTax account and open or continue your return
2. Select Federal from the menu, then Wages & Income (this is called Income & Expenses in TurboTax Self-Employed)
3. Continue and locate the section titled Investments & Savings and select Show More, then select Start or Revisit next to Interest on 1099-INT
4. Select Yes on the screen Did you receive any investment income? then Continue
5. If you see the screen Your investments & savings or Here's your 1099-INT info, select Add investments or Add another 1099-INT, then Continue
6. As you're going through the interview, on the Let's import your tax info screen, select Change how I enter my form.
7. On the How do you want to add your 1099-INT? screen, select Type it in myself.
8. On the Let's get the info from your 1099-INT screen, enter the information. Note: there's no where on the screen where it asks for the FEIN.