Reporting Interest on Schedule B

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tibbitts
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Reporting Interest on Schedule B

Post by tibbitts » Sat Mar 24, 2018 4:47 pm

This seems like an obvious question, but do you report interest itemized per-account, or one total per institution? Obviously the amount will (probably) be different, so the issue is which number the IRS will see. So if you have twenty accounts at an institution, and they report to you the interest earned on each item and also a total, which should you copy the schedule B? It would be easier to report the total, of course, but what matters is what the IRS wants, and I haven't found that in the instructions.

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Toons
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Re: Reporting Interest on Schedule B

Post by Toons » Sat Mar 24, 2018 4:50 pm

I go by the total for the institution.
Example.
CapOne Checking and Money Market Account-Total
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Geologist
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Re: Reporting Interest on Schedule B

Post by Geologist » Sat Mar 24, 2018 5:09 pm

I also go by the institution. I get a 1099 from the Hornswogglers Bank and it just gives a total at the bottom (even if it lists each account separately), so I just list Hornswogglers Bank and the total amount on the tax forms.

Perkunas
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Re: Reporting Interest on Schedule B

Post by Perkunas » Sat Mar 24, 2018 5:25 pm

I always report 1 line on Sch B for each 1099-INT received

tibbitts
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Re: Reporting Interest on Schedule B

Post by tibbitts » Sat Mar 24, 2018 5:30 pm

Perkunas wrote:
Sat Mar 24, 2018 5:25 pm
I always report 1 line on Sch B for each 1099-INT received
To clarify, it's all one 1099-INT "substitute" that you receive - the institutions just itemize and then give a total at the end. But of course if you enter each item into your tax software, the total won't be the same as the total reported on the form.

sport
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Re: Reporting Interest on Schedule B

Post by sport » Sat Mar 24, 2018 5:37 pm

Each 1099 INT that I receive has a total at the bottom. I enter those totals. If there is more than one 1099 from the same bank, I enter the total number from each one. My logic is that the numbers on my Schedule B are the same as the numbers on the 1099's. I have been doing this for many years and never have had a problem with the IRS over it.

tibbitts
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Re: Reporting Interest on Schedule B

Post by tibbitts » Sat Mar 24, 2018 5:46 pm

If I recall correctly some tax software wants (or did in the past) account numbers for interest reported, and that was why I got into the individual entry method years ago. Each item is still reported with its unique account number. But now none of the software I'm looking at seems to ask for account numbers any longer so I guess I can switch to reporting the total. I'll just blame Bogleheads if that turns out to be wrong. :happy

RudyS
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Re: Reporting Interest on Schedule B

Post by RudyS » Sat Mar 24, 2018 8:43 pm

sport wrote:
Sat Mar 24, 2018 5:37 pm
Each 1099 INT that I receive has a total at the bottom. I enter those totals. If there is more than one 1099 from the same bank, I enter the total number from each one. My logic is that the numbers on my Schedule B are the same as the numbers on the 1099's. I have been doing this for many years and never have had a problem with the IRS over it.
same here.

livesoft
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Re: Reporting Interest on Schedule B

Post by livesoft » Sat Mar 24, 2018 9:14 pm

I avoid getting interest and thus have very few accounts that give me interest, namely 2. Since one account routinely gives me less than 50 cents of interest, I cannot use tax software to report it because tax software rounds it down to zero. The other one is reported even though I don't get a 1099 for it.

So my advice: Stop getting interest and if cannot do that, consolidate all the accounts at each institution so there is only one 1099-INT per institution. :)
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tibbitts
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Re: Reporting Interest on Schedule B

Post by tibbitts » Sun Mar 25, 2018 7:40 am

livesoft wrote:
Sat Mar 24, 2018 9:14 pm
I avoid getting interest and thus have very few accounts that give me interest, namely 2. Since one account routinely gives me less than 50 cents of interest, I cannot use tax software to report it because tax software rounds it down to zero. The other one is reported even though I don't get a 1099 for it.

So my advice: Stop getting interest and if cannot do that, consolidate all the accounts at each institution so there is only one 1099-INT per institution. :)
I think that as of the last couple of years the Ally No-Penalty CDs have been popular for short-term savings and emergency funds, and many of us bought bunches of smaller denominations to avoid having to break a larger CD. So in my case that's where the statements come from.

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Artsdoctor
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Re: Reporting Interest on Schedule B

Post by Artsdoctor » Sun Mar 25, 2018 9:21 am

tibbitts wrote:
Sat Mar 24, 2018 4:47 pm
This seems like an obvious question, but do you report interest itemized per-account, or one total per institution? Obviously the amount will (probably) be different, so the issue is which number the IRS will see. So if you have twenty accounts at an institution, and they report to you the interest earned on each item and also a total, which should you copy the schedule B? It would be easier to report the total, of course, but what matters is what the IRS wants, and I haven't found that in the instructions.
You can put all of your accounts at the same institution on one line. For example, we cashed out some I-bonds in 2017 from two separate accounts. However, there is only one line on Schedule B with "U S Treasury" listed and the total interest amount is listed with it.

Wagnerjb
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Re: Reporting Interest on Schedule B

Post by Wagnerjb » Sun Mar 25, 2018 10:21 am

tibbitts wrote:
Sat Mar 24, 2018 4:47 pm
This seems like an obvious question, but do you report interest itemized per-account, or one total per institution? Obviously the amount will (probably) be different, so the issue is which number the IRS will see. So if you have twenty accounts at an institution, and they report to you the interest earned on each item and also a total, which should you copy the schedule B? It would be easier to report the total, of course, but what matters is what the IRS wants, and I haven't found that in the instructions.
Paul: I have an experience that suggests using the total figure from the 1099-INT statement.

About 5 years ago I got a letter from the IRS "correcting" my tax return. I owned a handful of individual stocks (held at Vanguard) and I entered the dividend income from each company separately in TurboTax. I named the payor as the individual company, not Vanguard. The total of the individual dividends was $3,372 (rounded).

Well, the IRS claimed that I didn't report the Vanguard 1099-DIV (in the amount of $3,371). They added the $3,371 to my individual dividends of $3,372 and assessed me additional tax.

I suspect the issue was that their computers didn't add up the individual dividends since they didn't state the payor was Vanguard. The $1 rounding difference might have also been an issue, but I suspect the payor was the problem.

Given my experience, I now enter the total figure as reported by Vanguard. I do not combine separate form 1099's on my tax forms and I also do not separate the individual dividend payments on my tax forms.

Best wishes.
Andy

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cheese_breath
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Re: Reporting Interest on Schedule B

Post by cheese_breath » Sun Mar 25, 2018 10:25 am

I report the total from the 1099 INT.
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scrabbler1
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Re: Reporting Interest on Schedule B

Post by scrabbler1 » Sun Mar 25, 2018 10:29 am

I enter one line per institution.

tibbitts
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Re: Reporting Interest on Schedule B

Post by tibbitts » Sun Mar 25, 2018 11:21 am

Thanks to everyone for the suggestions, which seem to uniformly say to go with the total (as does Ally Bank - but I only called once!) So that's what I'll do. Also saves typing (not really, I already entered all the individual items, so I'll have to replace that), but it will save typing next year! Ally was not an "importable" institution in my tax software, incidentally.

This is the first year I've had such a large number of individual CDs and accounts from one institution to report so I wasn't sure what to do.

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