Since I know many of you are still working on your 2015 taxes, I thought I’d share with you an interesting article in USA Today about the reporting requirements surrounding interest received from the various financial institutions with which you do business. The main point of the article is that ALL interest must be reported if it’s over 50 cents. (The IRS allows rounding, so anything below 50 cents can be omitted and you will still be within the rules.)
You should receive a 1099-INT from any financial institution that paid you more than $10 in interest. Even if the amount is below $10 and you do not receive a 1099-INT, you still must report the interest paid. The IRS’ matching program may “catch” any unreported interest and you may be fined in addition to having to pay the tax.