- Jan 9, 2007
- 1,046
- 1,122
- Country
- United States
- Gender
- Male
- Faith
- Christian
- Marital Status
- Married
Well, this is awkward. I have filed my Federal/State individual tax returns via an online service
for the past five years without a hitch. But, here's the oddity I'm experiencing that concerns
the requirement to report interest earned in 2022 on my bank checking account.
As you may know, banks will not send account holders a tax form/copy the IRS, if the annual interest earned
was less than $10.00. However, the IRS caveat is that the low interest amount must still be
reported. I earned $9.50 in interest.
Concerning the software, it only allows whole numbers. That website says all cents amounts
greater than $0.49 must but be rounded up to the next dollar. My concern is that if I round up to
$10.00, then that reaches the $10.00 threshold, and the IRS will expect a form 1099-I
interest earned form. All for the sake of a single cent to begin with. I'd like to get
clarification from that software company, but they initially field such questions with
the offer for "advice" at a fee.
If I sound like I'm concerned about big brother, I am. I started using this online service
five years ago, along with a special, annual taxpayer PIN, because someone committed
identity fraud on my hardcopy federal tax return. I got a nastygram from the IRS saying I owed a
bogus amount of $7,000+. It took filing a complaint with a U.S. congressman, after over a year of
haggling with IRS,to get them to recognize the fraud and stop harrassing me for "taxes owed".
I think the solution is for me to round down to $9.00. I sort of find it hard to believe
that the IRS would quibble about that. Still, who knows?
for the past five years without a hitch. But, here's the oddity I'm experiencing that concerns
the requirement to report interest earned in 2022 on my bank checking account.
As you may know, banks will not send account holders a tax form/copy the IRS, if the annual interest earned
was less than $10.00. However, the IRS caveat is that the low interest amount must still be
reported. I earned $9.50 in interest.
Concerning the software, it only allows whole numbers. That website says all cents amounts
greater than $0.49 must but be rounded up to the next dollar. My concern is that if I round up to
$10.00, then that reaches the $10.00 threshold, and the IRS will expect a form 1099-I
interest earned form. All for the sake of a single cent to begin with. I'd like to get
clarification from that software company, but they initially field such questions with
the offer for "advice" at a fee.
If I sound like I'm concerned about big brother, I am. I started using this online service
five years ago, along with a special, annual taxpayer PIN, because someone committed
identity fraud on my hardcopy federal tax return. I got a nastygram from the IRS saying I owed a
bogus amount of $7,000+. It took filing a complaint with a U.S. congressman, after over a year of
haggling with IRS,to get them to recognize the fraud and stop harrassing me for "taxes owed".
I think the solution is for me to round down to $9.00. I sort of find it hard to believe
that the IRS would quibble about that. Still, who knows?
