This may be a silly question, but I want to confirm that earned bank interest reported by the bank on a 1099-INT is required to be reported on your return if it amounts to less than $1500?
My confusion lies in that the earned bank interest gets input onto a Schedule B , but the IRS website clearly outlines that a schedule B only needs to be filed for those who "had over $1,500 of taxable interest or ordinary dividends" (or other circumstances). https://www.irs.gov/forms-pubs/about-schedule-b-form-104
I was always under the impression that interest over $10 is reportable, but now I'm confused.
All interest is reportable by you, even if it's only $1 or less. It is the bank that is not required to furnish you a 1099-INT if it's less than $10, but the filer still has to report it.
According to the Form 1040 instructions, you would need a Schedule B for reporting it only if the total amount of taxable interest or ordinary dividends is over $1,500 or if any of the other conditions listed at the beginning of the Schedule B instructions applies to you.
If the total amount is such that you don't need Schedule B, then when you enter it into TurboTax, the interest or dividends will appear directly on the Form 1040 and any preliminary Schedule B or Sch B worksheet (if applicable) would not be included in the filing.
You may be referring to the requirements for a dependent claimed in someone else's return to file if they have unearned income over a certain amount.
All interest must be entered and surely an interest amount of $1500 should be in schedule B.
**Mark the post that answers your question by clicking on "Mark as Best Answer"
I revised my answer above a little. I clarified that the $1,500 total that necessitates using a Schedule B is for "taxable interest or ordinary dividends", which you likely already knew since you had quoted that part in your original question.
And I provided the Schedule B instructions that details that along with a few other exceptions that require a Schedule B.
In any case, you need to report it, and it should appear directly on Form 1040, if the total of such taxable interest or ordinary dividends is less than $1,500.
Still have questions?Make a post