Oh Joy, Ain't this a Great Country

[swampgator]

Was waiting on my 1099's from the credit union and USAA. Because of our recent weather, our local credit was closed the past 3 days. So, called USAA today to see under which conditions may 1099's not be mailed. The lady told me if your interest is under $10, they do not send you a 1099. Anyone else have that experience?

If that be true, then I'm done.

[JPG]

Was waiting on my 1099's from the credit union and USAA. Because of our recent weather, our local credit was closed the past 3 days. So, called USAA today to see under which conditions may 1099's not be mailed. The lady told me if your interest is under $10, they do not send you a 1099. Anyone else have that experience?

If that be true, then I'm done.

Can we assume they do not send 1099 info to :eek:IRS:eek: either if < $10?

[Ed in Tampa]

Can we assume they do not send 1099 info to :eek:IRS:eek: either if < $10?

There is a minimum amount that must be paid before a 1099 is required. I don't recall the exact number but $10 if memory served me correctly is within it .

If you can read Gov't double speak look at http://www.irs.gov/instructions/i1099int/ar02.html
I think the first statement after the table of contents says this.

[swampgator]

Thank you, Ed. I also checked the same website as you posted and if I read it correctly, then no 1099 is coming because the amount earned was about $2 on the last statement. So, here's a cute little trick, spread your savings around into various accounts and don't earn sufficient funds at any one institution to get above the $10 exemption. You may earn sufficient amounts to start another account, but IRS won't bother you. Both my institutions are paying about 1/10 of 1 percent or .1%.

Filing today. Will be done with a refund.

[keakap]

... So, here's a cute little trick, spread your savings around into various accounts and don't earn sufficient funds at any one institution to get above the $10 exemption. ...

CAREful!
Before you sign that return, take a minnute or so and find the line that reports total interest. Maybe review Sch. B.

But to be really safe, make sure you're registered as a Democrat voter. You're exempt.
;-)

[dusty]

I wonder when this tax criteria was established. $10 ???

[Ed in Tampa]

Thank you, Ed. I also checked the same website as you posted and if I read it correctly, then no 1099 is coming because the amount earned was about $2 on the last statement. So, here's a cute little trick, spread your savings around into various accounts and don't earn sufficient funds at any one institution to get above the $10 exemption. You may earn sufficient amounts to start another account, but IRS won't bother you. Both my institutions are paying about 1/10 of 1 percent or .1%.

Filing today. Will be done with a refund.

Or have so little money the interest will not add up to $10:D

[Ed in Tampa]

I wonder when this tax criteria was established. $10 ???

As far as I know it has been for a long time. Also contractors don't get a 1099 unless they are over $600. I guess they would like you to report any amounts lower. However I think people simply forget to do it if they don't have a 1099 or something to remind them. Besides the tax on less than $10 is not going to amount to anything with rounding up and down.

Now if I was earning a living doing $400 jobs for people I would think I would remember them.
Of if I had 200 bank account all paying under a $10 I would say that was planned fraud.

[swampgator]

Have just confirmed with my local credit union that if a depositor did not earn at least $10, they do not file or send a 1099. According to the IRS website, it is not necessary to declare. It's a nice tax loophole for us who retired from the federal government (DOD) and don't have lots of money. I'll take it. I figured it both ways and it made no difference. Filed, done and refund on the way.

Oh, and TaxAct was determined that I received Social Security. The program asked me multiple times to input my SS earnings. I paid 7% on every penny I earned into a retirement plan that was established in 1920. If I fully qualify for SS earnings, I get a stiff penalty. So, steady as she goes.

[fjimp]

I remember a fellow some years ago who assumed he need not report several seperate situations of income under the $600 level. I later heard he paid tax and severe penalties for his short sightedness. If memory serves correctly there is a separate form (not a 1099) required by IRS listing all of those smaller payment made.