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Merlo, Accountant
Category: Tax
Satisfied Customers: 9783
Experience:  25+ years tax consulting. Specializing in returns for US citizens living abroad
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I received a 1099 INT form a couple of months ago, but it was

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I received a 1099 INT form a couple of months ago, but it was after the deadline, and I had already filed my taxes. The interest on it added up to twelve dollars. I still haven't filed a 1099 int. I know I'm way pass the deadline, but I would like to resolve this. Next year I'm applying for financial aid, and I want to have everything straightened out because I still have my savings, and I know that this issue might come up. It's not a lot of money, but still...
Hello cooldude,

Can you please explain what you mean when you say "I should have sent out my 1099 int forms earlier"?

Are you the one who received the form or sent it out?

Customer: replied 7 years ago.

Dear Merlo,

I received a letter from apple bank from which I had 10,000 dollars in my savings. I received a form alerting me that I had to declare twelve dollars of interest in the account for my taxes. When I received this letter it was around early march and I had already done my taxes. I haven't refiled or done anything after that. A friend told me to forget it and not redo my taxes or refile a form because the government wouldn't care for a declaration of an additional twelve dollars of income, but now I'm not so sure.

Hello again cooldude,

It's hard to say whether or not the IRS would actually contact you about this 1099 form not being included on your tax return. Your friend is correct that the tax consequences would be negligible. Even if you were in the highest tax bracket of 35%, your tax on this would only be $4.20. If you are in the 10% bracket, your tax will only be $1.20.

But even with such a low amount of tax dollars involved here, because the IRS uses computerized systems to check your returns, it's possible it may kick out a notice saying you have not filed all of your tax forms.

The best thing to do is just go ahead and file an amended return to add this interest to your income, that way you know it is taken care of. An amended return is filed on Form 1040X and must be mailed with any extra tax you may owe.

Filling out a Form 1040X is not all that difficult, particularly for a small change such as this one. I just actually did the same thing for my son for a W-2 he received late that was only for $48.00. I just wanted to go ahead and get if filed that way I know it is taken care of, and don't have to worry about getting a notice two years from now, so you should probably consider doing the same with this 1099 form.

If this was helpful please press the Accept button.

Thank you cooldude, and let me know if you have more questions.

Merlo and other Tax Specialists are ready to help you
Customer: replied 7 years ago.
Thanks for the help merlo. I kind of wanted to let it slide, but since I'm applying for school next year and have to fill out a fafsa, I want to make sure that everything is accounted for. Do you think that this little undeclared income could pose a problem when I apply for financial aid? I know I'm being a little overzealous, but I want to make sure I don't anger the financial aid gods. Plus is there a deadline to fill out a 1040x? And because of the lateness of this declaration, would I have to pay some sort of fine?
Hello again cooldude,

I personally do not think this would be an issue for you with FAFSA if you decide not to file the amended return. The important thing is that you are disclosing the existence of the savings account, and they would have no way of knowing when that account was opened or how much interest, if any, you earned last year.

As far as filing the Form 1040X, there is never a deadline, unless you are filing an amended return for the purposes of claiming an additional refund. When claiming a refund, an amended return must be filed within 3 years of the original due date.

And you will not be subject to any late filing penalties because your original return was filed on time. If your amended return resulted in a large amount of additional tax being owed, then you might have to pay some penalties and interest. But in your case a penalty would not apply, and interest cannot be more than pennies at best.

If this was helpful please press the Accept button. Positive feedbackis also appreciated.

Thank you cooldude.