Are bank test deposits taxable?

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radnor
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Are bank test deposits taxable?

Post by radnor »

Earlier this year, I linked a second bank account with my main account, and my main bank made (but did not ever withdraw) two test deposits totaling $0.22. Will I need to report this on my 2017 taxes?
alshayed
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Re: Are bank test deposits taxable?

Post by alshayed »

Generally speaking companies aren't required to issue 1099's for payments to people under $600, and I doubt they report anything to the IRS that doesn't have a 1099 issued for. So basically you're on the honor system here. From a practical POV I believe everything on your taxes is rounded to the nearest dollar though so this would round down to $0 and not be matter anyway.
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radnor
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Re: Are bank test deposits taxable?

Post by radnor »

alshayed wrote:Generally speaking companies aren't required to issue 1099's for payments to people under $600, and I doubt they report anything to the IRS that doesn't have a 1099 issued for. So basically you're on the honor system here. From a practical POV I believe everything on your taxes is rounded to the nearest dollar though so this would round down to $0 and not be matter anyway.
Phew, you just saved me $0.06, kind madam/sir!
Eagle4Life
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Re: Are bank test deposits taxable?

Post by Eagle4Life »

Is this thread a joke?
douginct
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Re: Are bank test deposits taxable?

Post by douginct »

Eagle4Life wrote:Is this thread a joke?
I sure hope so.
Gill
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Re: Are bank test deposits taxable?

Post by Gill »

Look on it as a token benefit received from a business in the ordinary course of business. If such items were taxable you'd have to report the annual calendar received from vendors you do business with. How about the bartender who buys you a drink?
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tetractys
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Re: Are bank test deposits taxable?

Post by tetractys »

Gill wrote:Look on it as a token benefit received from a business in the ordinary course of business. If such items were taxable you'd have to report the annual calendar received from vendors you do business with. How about the bartender who buys you a drink?
Gill
The last time a test deposit was done for me, it was also charged back. This would be analogous to the bartender drinking the drink he bought for you. -- Tet
tibbitts
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Re: Are bank test deposits taxable?

Post by tibbitts »

Such deposits are now normally returned to their sender. We used to get to keep them but that doesn't seem to happen any longer.
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whaleknives
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Re: Are bank test deposits taxable?

Post by whaleknives »

Vanguard has always withdrawn my (their) test deposits. :D
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bertilak
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Re: Are bank test deposits taxable?

Post by bertilak »

Amounts on tax forms are rounded to the nearest dollar so these few pennies can be ignored. If you try to enter them into a tax program (I never have) I suspect they will show up as zero.

It could also be considered a gift well under the tax-free amount but I don't think even that comes into play.
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SrGrumpy
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Re: Are bank test deposits taxable?

Post by SrGrumpy »

A couple of banks have let me keep their test deposits.

I wish deposit/withdrawals from savings accounts did not count as part of the 6 that you are allowed to do monthly. I got pushed over the limit with Ally once, and they charged me a fee. I complained - since the withdrawal really wasn't my doing - and they reluctantly rescinded it. I then wrote the to the Consumer Financial Protection Bureau - but nothing happened.
Goal33
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Re: Are bank test deposits taxable?

Post by Goal33 »

Before they used to withdraw test deposits, I wrote a script to link and remove several accounts programmatically. I ended up "earning" $300-400 before the bank gave me a call and told me to cut it out. I stopped, I had fun though. It was one of my early coding experiments :)
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Re: Are bank test deposits taxable?

Post by Gill »

bertilak wrote:Amounts on tax forms are rounded to the nearest dollar so these few pennies can be ignored. If you try to enter them into a tax program (I never have) I suspect they will show up as zero.

It could also be considered a gift well under the tax-free amount but I don't think even that comes into play.
In s not a gift when in a business context. Otherwise, you could treat your salary as a non taxable gift.
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Rainier
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Re: Are bank test deposits taxable?

Post by Rainier »

Seriously, is this a joke?
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whodidntante
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Re: Are bank test deposits taxable?

Post by whodidntante »

You might be overthinking this.
inbox788
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Re: Are bank test deposits taxable?

Post by inbox788 »

Goal33 wrote:Before they used to withdraw test deposits, I wrote a script to link and remove several accounts programmatically. I ended up "earning" $300-400 before the bank gave me a call and told me to cut it out. I stopped, I had fun though. It was one of my early coding experiments :)
You're lucky all you got was a warning. Did you receive a 1099 or file taxes on the income? Don't answer that last part! You don't want the IRS coming after you for tax evasion.
https://archives.fbi.gov/archives/sacra ... 091709.htm
Looks like the actual crime wasn't the programming or the deposits, it was the use of fake names and information, so if you didn't do that, there might not be anything illegal. Maybe that is why they stopped letting people keep the change, because a wise guy or two will take it to the extreme.
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Re: Are bank test deposits taxable?

Post by radnor »

douginct wrote:
Eagle4Life wrote:Is this thread a joke?
I sure hope so.
This thread is 95% joke.
rec7
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Re: Are bank test deposits taxable?

Post by rec7 »

radnor wrote:Earlier this year, I linked a second bank account with my main account, and my main bank made (but did not ever withdraw) two test deposits totaling $0.22. Will I need to report this on my 2017 taxes?
They take it back so I would say no.
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radnor
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Re: Are bank test deposits taxable?

Post by radnor »

rec7 wrote:
radnor wrote:Earlier this year, I linked a second bank account with my main account, and my main bank made (but did not ever withdraw) two test deposits totaling $0.22. Will I need to report this on my 2017 taxes?
They take it back so I would say no.
Nope, my bank didn't (and even confirmed that they wouldn't).
JGoneRiding
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Re: Are bank test deposits taxable?

Post by JGoneRiding »

radnor wrote:
rec7 wrote:
radnor wrote:Earlier this year, I linked a second bank account with my main account, and my main bank made (but did not ever withdraw) two test deposits totaling $0.22. Will I need to report this on my 2017 taxes?
They take it back so I would say no.
Nope, my bank didn't (and even confirmed that they wouldn't).
I have had a few like that not taken back. I want to point out that while PEOPLE/BUSINESSEs do not issue a 1099 misc until 600, banks issue 1099-INT at $10 and sometimes as low as $6. So if you only make $3 on a int bearing acct that won't be reported either.
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dm200
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Re: Are bank test deposits taxable?

Post by dm200 »

radnor wrote:Earlier this year, I linked a second bank account with my main account, and my main bank made (but did not ever withdraw) two test deposits totaling $0.22. Will I need to report this on my 2017 taxes?
When I have dont this, the few pennies deposited by ACH are soon withdrawn by ACH.
mikep
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Re: Are bank test deposits taxable?

Post by mikep »

This sure is a headache linking my bank account to my HSA for ACH reimbursements. I wish there was another way. I have to treat it as an above the line contribution and withdrawal for medical expenses, and dial down my work contributions $1 to not go over the limit.
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Re: Are bank test deposits taxable?

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This thread has run its course and is locked (topic exhausted, possibility of tax evasion). See: Locked Topics
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