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Missing a Bank 1099? Here's a Possible Reason

Wednesday, February 17, 2010 - 8:11 AM
Time.com's The Curious Capitalist blogger writes about how she was trying to find a 1099 from a bank in which she had a savings account. It turns out the bank didn't send her one since her account had not earned at least $10 of interest in 2009. With the low interest rates, I'm afraid this might be quite common.
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Ken TuminKen Tumin5,441 posts since
Nov 29, 2009
Rep Points: 123,675
1. Wednesday, February 17, 2010 - 4:24 PM
The income filing requirements for Form 1099-INT and 1099-DIV states that it has to be sent to the IRS when the amounts exceed $10.  Any amounts below that is optional.  I received just a few dollars of interest and dividends each on the 1099 statements that I recieved from my brokerage account.  So getting one for less than $10 depends on the company.
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AnonymousAnonymous2,281 posts since
May 9, 2010
Rep Points: 3,784
2. Wednesday, February 17, 2010 - 4:28 PM
One thing to note about this missing form.  ING Direct, for some reason, made my savings account an all electronic access account (even though I DID NOT sign for it).  The 1099 that they placed on the website can ONLY be seen by the PRIMARY OWNER of the account.  The joint coowner never has access to this form when they login.  So, if the primary owner forgets to sign on and look up the form, it can be overlooked when you file your return.  I had to file an emended return one year when I forgot about the ING Direct account (I was a joint coowner).
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AnonymousAnonymous2,281 posts since
May 9, 2010
Rep Points: 3,784
3. Friday, February 19, 2010 - 9:06 PM
My Vanguard brokerage statement failed to list any interest, i.e., the existence of my Prime Money Market Account (contrast to previous years).  So I called them up.  Indeed, he explained the interest earned was only about $5.00 due to the extremely low dividend rates throughout most the year.  Printing out end of year online statements helps in these cases.
2
AnonymousAnonymous2,281 posts since
May 9, 2010
Rep Points: 3,784
4. Thursday, October 3, 2013 - 3:47 PM
For fillable Form 306 you can find it at PDFfiller.com
http://goo.gl/fX5oBz
You can fill the text fields, add a variety of checkmarks, digitally sign the form and even add pictures. After your pdf form is completed, it can be printed, emailed, faxed or saved on your computer. You can even send fillable pdf forms to your customers, employees, vendors and partners.
1
eliejulzeliejulz1 posts since
Oct 3, 2013
Rep Points: 1
5. Thursday, October 3, 2013 - 5:58 PM
If you earn less than $10 you are still required to report it as income and pay taxes on it. 
1
AllyAlly774 posts since
Jan 16, 2010
Rep Points: 2,257
6. Thursday, October 3, 2013 - 6:08 PM
Ally:  Earned income and Interest Income are two different things.  We don't get 1099 INTs on Earned Income.  It is in an entirely different category especially for our tax reports.  As you posted, "All" earned income must be reported.  It is only when it is interest and less than $10.00 they don't have to send us a 1099 Int.  I keep a ledger book with all our interest listed for the entire year so when tax time comes around, I already know if I am due a 1099 Int or not for certain accounts.  It is also helpful in verifying that I have gotten all the 1099 Ints that I am due and makes doing my taxes correctly a lot easier.
3
paoli2paoli21,140 posts since
Aug 10, 2011
Rep Points: 5,083
7. Thursday, October 3, 2013 - 6:16 PM
I also keep ledgers. In fact I was redoing and adding up the interest income for the year today to see how much I can convert to a Roth this December and not have my income be high enough for a Medicare premium increase.

Interest income I should have said should be reported even if less than $10. Just like earnings from jury duty if under the reporting limit should be reported as income. I do. I sleep  nights that way. 

THANK YOU FOR THE CORRECTION. 
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AllyAlly774 posts since
Jan 16, 2010
Rep Points: 2,257
8. Thursday, October 3, 2013 - 8:30 PM
Ally:  I was not trying to "correct" you.  I was fully aware you understand the difference but we have many people who may not post but read our information and I was posting it to clarify it for any of them or others who may have misunderstood your post.  Most of our regular members,  I am sure,  already knew this since they are our teachers.  I am still learning from them.  It was mainly for the newbies.  
2
paoli2paoli21,140 posts since
Aug 10, 2011
Rep Points: 5,083
9. Thursday, October 3, 2013 - 8:34 PM
I appreciate the help thank you. 
2
AllyAlly774 posts since
Jan 16, 2010
Rep Points: 2,257
10. Saturday, October 5, 2013 - 10:20 AM
Ally:  You recently posted:

"I also keep ledgers. In fact I was redoing and adding up the interest income for the year today to see how much I can convert to a Roth this December and not have my income be high enough for a Medicare premium increase."

How can you convert to a Roth if you have no earned income?  I have never done a Roth IRA so I do not know much about them.  You probably cannot add more income to a Roth since you are not working but what is this "conversion" you are referring to.  Can we switch funds from a Traditional IRA into a Roth?  I did not know we could put our interest income into a Roth or any type of IRA once we were not working.Any info you can share will be appreciated.  Thanks!
2
paoli2paoli21,140 posts since
Aug 10, 2011
Rep Points: 5,083
11. Saturday, October 5, 2013 - 10:37 AM
You can take some or all of  your traditional IRA and pay tax on it and convert it to a Roth. This way your RMD will be smaller. You want to make sure you will not need it because there is a hold on part of the account for 5 years. It is not always the best thing for retirees to do. You do not want to jump an income tax bracket in most cases and you do not want to go over the limits for high income retirees to pay a higher Medicare premium. Check with the people that help with your taxes if you have any questions have the IRS send Publication 590 or you can read it on line or download it at IRS.gov. You cannot put your interest income into any kind of IRA. It has to be from wages but you can convert some or all of a traditional IRA to a Roth IRA. 
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AllyAlly774 posts since
Jan 16, 2010
Rep Points: 2,257
12. Saturday, October 5, 2013 - 10:48 AM
Thanks for the explanation.  "I" am our tax advisor since we had to move to another state.  I never had to read up on Roth because I was not interested in it.  I will check out Pub 590 online and educate myself.  I don't think we need to worry about being in the higher Medicare group so I probably don't have to be concerned about the Roth.  Just curious as to what you were referring to.
2
paoli2paoli21,140 posts since
Aug 10, 2011
Rep Points: 5,083
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