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rated:
Do I have to file taxes for $0.12 interest income from a 1099 form?
Please and Thank You

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rated:
Yup. If you don't, IRS will accruing penalty on it and it will grow to be a much bigger sum. You will regret not having dealt with this problem in the first place

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You can do whatever you want bro.

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No.

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What is $0.12 rounded to the nearest dollar?

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The bank should have paid the tax on the interest for you. Cheaper than the cost of mailing out the 1099.

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Requirements for filing federal taxes:

Single: $10,300 if under age 65. $11,900 if 65 and older.
Married filing jointly: $20,700 if both under 65. ...
Married filing separately -- $4,050 at any age.
Qualifying widow(er) with a dependent child: $16,650 if under 65. ...
Head of household: $13,350 if under 65.

rated:
bspervaiz said:   Do I have to file taxes for $0.12 interest income from a 1099 form?
Please and Thank You

  
No financial institution should have sent you a 1099 for that amount of interest.  Normally the cutoff is $10.  Below $10 a 1099 customarily is not sent, and the interest is not reported to the IRS.

Reference 

However, if you read the rule carefully, you will see a financial institution is not required to send a 1099 if interest amount is south of ten bucks.  This begs the question:  Are there financial institutions sufficiently idiotic to send a 1099 regardless the amount of interest earned?

You may have a better answer to that question than I have.  Suffice it to say, the sending of a 1099 with insufficient provocation raises yet another question:

Does the IRS react to 1099s it receives which show less than $10 interest;  or does the IRS disregard and discard such submissions?

You might be able to find the answer to that online, if you search.  Personally, if sent a 1099 for any amount I would report that amount when filing my taxes.  Why?  To avoid possible hassle with the IRS, regardless how unlikely.

In addition, if your situation befell me, I would make vigorous effort to stop doing business with any such chicken-s*** financial institution that engages in such foolishness.  WABOA

rated:
shinobi1 said:   
bspervaiz said:   Do I have to file taxes for $0.12 interest income from a 1099 form?
Please and Thank You

  
No financial institution should have sent you a 1099 for that amount of interest.  Normally the cutoff is $10.  Below $10 a 1099 customarily is not sent, and the interest is not reported to the IRS.

 

  
Umm, I get 1099-DIV forms all the time for amounts less than $1.

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avalon6 said:   
shinobi1 said:   
bspervaiz said:   Do I have to file taxes for $0.12 interest income from a 1099 form?
Please and Thank You

  
No financial institution should have sent you a 1099 for that amount of interest.  Normally the cutoff is $10.  Below $10 a 1099 customarily is not sent, and the interest is not reported to the IRS.

 

  
Umm, I get 1099-DIV forms all the time for amounts less than $1.

  
Ummmm.  OP states the 12 cent 1099 was for interest.  I responded on that basis, linked the rules for 1099-INT, and the rule is as I stated.  Please click the link I provided up thread labelled "reference".

Now, are rules for 1099-DIV different?  Are dividends dealt with differently by the IRS where 1099 rules are concerned?

Quite possibly.  I do not know those rules.  I was responding solely to the OP, whom I first quoted.  I was not responding regarding 1099 forms in general.

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I also get 1099 DIV forms for puny amounts, but banks generally don't send them if you earned less than $10.

As far as reporting 12 cents, I'm going to say you don't need to. The reason I say that is tax preparation software usually rounds amounts to the nearest dollar. I use the H&R Block Tax Cut software. If I enter 12 cents, it will be rounded down to zero.

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1099 (77.45kB)
Disclaimer
This came to me for 2016.

$.04 on a 1099-INT.

Wow.

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I get a combined 1099 from Scottrade, which includes 1099-DIV and 1099-INT. And the 1099-INT is always less than $10. Pretty sure I don't have a choice.

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Just added to the other 1099.  At most you will own $.48 for it but only if you are in the top tax bracket.  For most people it will not move the meter.

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Actually it is possible to earn $0.50 in interest and owe more than a dollar extra in taxes due to rounding, or even more than a dollar if you use the tax tables instead of the calculation method and you just happened to be on the boundary.

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qcumber98 said:   What is $0.12 rounded to the nearest dollar?
  This.

Assuming you otherwise pay taxes and fill out some version of 1040, you should always be rounding to the nearest dollar.  In this case when you go to enter interest income, twelve cents rounded to the nearest dollar is zero dollars, so no, you do not need to pay taxes on it.  That said if you have other interest income from somewhere else, then you technically should be adding this 12 cents to the other interest, and again rounding to the nearest dollar.  If you didn't have an income other than 12 cents in interest this year then there is no requirement that you file a return.

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jman220 said:   
qcumber98 said:   What is $0.12 rounded to the nearest dollar?
  This.

Assuming you otherwise pay taxes and fill out some version of 1040, you should always be rounding to the nearest dollar.  In this case when you go to enter interest income, twelve cents rounded to the nearest dollar is zero dollars, so no, you do not need to pay taxes on it.  That said if you have other interest income from somewhere else, then you technically should be adding this 12 cents to the other interest, and again rounding to the nearest dollar.  If you didn't have an income other than 12 cents in interest this year then there is no requirement that you file a return.

  Every tax software that I've ever used rounds the individual 1099 interest amounts.

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