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Have You Received All of Your Bank 1099s? And Are They Correct?

POSTED ON BY

By this time you should have all of your 1099s from your banks and credit unions. The IRS requires financial institutions to mail 1099s to recipients by January 31. One thing that can complicate receiving a 1099 is when banks fail or merge. A reader emailed me about his wait for his 1099-INT from Home Savings of America. The bank failed last February, and it was one of the rare failures without an acquisition. Thus, it's the FDIC that is sending out the 1099-INT and 1098 forms. The reader said he called the FDIC customer service (888-206-4662), and he was told that the FDIC had mailed the 1099s on January 31st. So if one of your banks had failed last year and was not acquired, expect a 1099 from the FDIC.

A more common complication is when banks merge. For these cases, you may receive a 1099 from a bank or credit union that you don't recognize. A reader emailed me last week asking about Berkshire Bank. He received a 1099 from that bank, but he didn't know he had an account there. It turns out Berkshire Bank acquired Beacon Federal last October. So if you had an account at Beacon Federal (like its reward checking account), you probably received a 1099 from Berkshire.

One thing that can help keep you updated on changes at your bank is our Bank Alerts service. Just search for your bank in the Bank Alerts page, and click the "Receive Bank Alerts" button on that bank's page.

Don't forget that you may also receive 1099s from banks where you earned a bonus (like a checking account bonus). That's even the case when the bonus isn't cash. Last year Citibank received a lot of publicity when it began issuing 1099 forms for miles awarded for opening new checking and savings accounts. There were also worries that banks may send 1099s for miles awarded from credit cards. However, reports suggested that remains unlikely. If you have received a 1099 on any credit card bonus, please leave a comment.

If you didn't receive a 1099 in the mail, you may have to log into your bank account to access the 1099. I had to log into my accounts at ING DIRECT (now Capital One 360) and FNBO Direct, to access my 1099s. I even have one credit union that requires me to log in to access my 1099. I assume I gave these institutions my permission to deliver 1099s online instead of by mail. I actually prefer that since I don't have to worry about the 1099 being lost in the mail or delivered to the wrong house.

If you still can't find your 1099 even after you log into your account, it might be due to the total interest that you earned at that bank for 2012 being less than $10. Banks are not required to issue 1099-INTs when the total interest is less than $10. With the very low interest rates, this might be a common occurrence.

Once you confirm that you received all of your 1099s, it's a good idea to check the amount of interest that was reported. Last year Ally Bank wrongly reported CD interest for 2 percent of its CD customers.

Have you had any problems with your bank 1099s this year?


Edit 2/8/13: Added paragraph on bank alerts.



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Comments
15 Comments.
Comment #1 by Anonymous posted on
Anonymous
Just found out about the less then $10.00 interest rule for myself when I called yesterday looking for the 1099

2
Comment #2 by Anonymous posted on
Anonymous
Chase sent me a 1099 for $0.01 this year!

Banks have the option to not report interest under $10 but they can report if they want. 

3
Comment #3 by Anonymous posted on
Anonymous
I received all of my 1099s from all institutions as expected and verified that the amounts reported to be correct.  I redeeemed several Savings Bond on Dec. 31 and got the 1099-INT rather quickly in early January.

1
Comment #4 by Shorebreak posted on
Shorebreak
Received them all. All America Bank in Oklahoma was the last one in. Everything appears correct except a $2.00 EWP on the 1099 from PenFed. I have no idea what that's about but it's not worth researching it with a customer service representative. 

2
Comment #5 by Anonymous posted on
Anonymous
Shorebreak-I would absolutely check it. That doesn't sound right if you did not redeem any CD's early. Check......you never know what's going on.

2
Comment #6 by rjm (anonymous) posted on
rjm
Got all my bank ones. Frankly, I just assumed they are correct. Got most of them online. One local bank didnt have it available online. Without adding up the 12 months interest.

 

Went to do my taxes and my broker is the only one that hasnt gotten my stuff ready. So they are holding me back from filing.

1
Comment #7 by Shorebreak posted on
Shorebreak
Re: Anonymous - #5, Thursday, February 7, 2013 - 10:16 PM

"Shorebreak-I would absolutely check it. That doesn't sound right if you did not redeem any CD's early. Check......you never know what's going on."

Thanks for your post. I researched the item in the transaction history online and found the reason for the $2.00 EWP. I had a PenFed certificate that matured on 2/11/2012. I directed that the certificate not be renewed at the same 5-year maturity but renewed at a 7-year maturity. Evidently, they automatically renewed the certificate at the 5-year maturity but also opened a new certificate at the 7-year level on 2/11/2012. Thus I had two certificates open at the same time, for the same funds, both paying dividends. On 2/13/2012 the error was discovered. I was credited with a $2.00 dividend for the two days of the 5-year certificate renewed by mistake then penalized $2.00 as an EWP for the same amount. Thus it was a wash and merely accounting magic utilized to show it on paper. Since it was the mistake on the part of PenFed the $2.00 EWP is an adjustment to gross income on my IRS form 1040.

3
Comment #8 by me1004 posted on
me1004
I note, just FYI, the deadline for mutual funds to provide a 1099 is not until Feb. 15. (And that is the deadline by which they are supposed to get a stamp on them and put them in the mail, not the date by which you must receive them.) I'm still waiting on one that every year refuses to so much as put a stamp on it until the end of the very last day -- and will not even provide the info before that online or over the phone, so delays me from doing my taxes. Irritating.

3
Comment #9 by Anonymous posted on
Anonymous
Has anyone had any luck with getting a bank on a joint cd to change the person to whom the 1099 is sent to the second name? They are saying it's a nonpermitted transfer, and I should break the cd and pay the penalty to switch the order of names-Any ideas from anyone?

1
Comment #10 by Paoli2 posted on
Paoli2
I think I have received all my needed 1099INTS per my records but since I, too, read they have until 2/15/13 to send them to us, I am holding on to my finished Federal and State tax forms until after then to mail for "just in case".  Don't want to have to redo both taxes for an unexpected 1099 Int which may pop in late.

 

2
Comment #11 by Anonymous posted on
Anonymous
Have gotten all of them except the one from the US Treasury!

1
Comment #14 by Anonymous posted on
Anonymous
Yes - I have problems with my 1099 int forms. This past August I changed my legally name to my new married name, everywhere, at hte banks, my company, even at the SS office.  However, all my 1099 forms came with my maiden name.  How do I go about correcting that?

 

Thanks!

1
Comment #15 by Anonymous posted on
Anonymous
Are they correct is the right question. Cashed in some EE bonds for my adult grandson that we have been buying since he was in school. Even though I cashed them at bank and gave him the money the 1099INT came with his name and SSN ( I do his taxes). The amount showing in Box 3 is the amount I was given when, as far as I can tell, it should have been the amount I recevied (for him) minus the money it cost me to buy the bonds. Time to make some phone calls before tax deadline.

1
Comment #16 by Anonymous posted on
Anonymous
Every year, I have been getting in the mail a 1099 estimated tax packet with personalized quartely payment vouchers and addressed envelopes  (Also enclosed is a payment voucher for any owed taxes for 2012).  For year 2013, I have not received this packet.  Does anyone know if the IRS has stopped doing this?

1
Comment #17 by Anonymous posted on
Anonymous
Correction to comment #16:

1040 estimated tax packet, not 1099 estimated tax packet

1