Do I need to include dividend income if they're below a certain amount? TurboTax question
I'm trying to finish my taxes for this year but I'm stuck on what to do with my tiny dividend income. I've lost access to my brokerage account (forgot my stupid password) so I can't get the official documents right now. I think my total dividend income for the year is like $5.33 or something ridiculously small. I know with bank interest there's some minimum threshold where they don't even send you forms if it's under $10, so does the same rule apply to dividends? My tax software (using TurboTax) automatically rounds it to $5 when I enter it anyway. I did get the 1099-INT from my savings account since that was over the minimum, but nothing came in the mail for these stock dividends. Should I just skip reporting this tiny amount or is the IRS going to come after me for those few dollars? Anyone know what the minimum reporting threshold is for dividend income?
20 comments
Join the conversation
Zachary Hughes
You technically need to report all income, including dividends, regardless of the amount. The $10 threshold you're thinking of relates to when financial institutions are required to send you a 1099-DIV form, not whether you're required to report that income. Even though your brokerage didn't send you a form because your dividends were under $10, the IRS still expects you to report that income. The good news is that the tax impact on $5.33 will be minimal - probably less than a dollar depending on your tax bracket. If you're using TurboTax, just enter the $5.33 as dividend income. You can usually enter it manually without needing the official form. Better to report it and be completely accurate than worry about it later.
0 coins
Mia Alvarez
•What about if you have multiple tiny dividend amounts from different stocks? Do you need to list each one separately or can you just add them up and report the total?
0 coins
Zachary Hughes
•You can generally add them up and report the total if they're all qualified dividends from the same brokerage. Just make sure you're tracking the sources somewhere in case of questions later. If they're different types of dividends (qualified vs non-qualified), you would need to separate those since they're taxed differently. But for small amounts all of the same type, a total is usually fine.
0 coins
Carter Holmes
I had almost the exact same situation last year with about $7 in dividends and no way to access my account information. I ended up using taxr.ai (https://taxr.ai) to help figure out what to do. Their AI tax assistant analyzed my situation and explained that while brokerages don't have to send 1099-DIVs for under $10, I still needed to report it. The tool helped me understand exactly where to put this info in my tax software and what documentation I should keep just in case. Really saved me from stressing about whether I was doing it right or if I needed to waste time recovering my brokerage password just for a few dollars of dividends.
0 coins
Sophia Long
•How does taxr.ai handle situations where you have some documentation but not all of it? I've got most of my tax docs but missing a couple things like this.
0 coins
Angelica Smith
•Is it actually worth using a service for such a small amount though? Seems like overkill for $5 in dividends.
0 coins
Carter Holmes
•It can analyze whatever documents you have and help fill in the gaps by asking you questions about your situation. It's really good at figuring out what you're missing and how to properly report it. For small amounts, it's less about the amount and more about getting it right. I used it for my whole tax situation, not just the small dividend issue. Peace of mind is worth it for me, especially since tax mistakes can follow you for years.
0 coins
Sophia Long
Just wanted to update after trying taxr.ai for my missing documentation situation. It was surprisingly helpful! Not only did it help me figure out how to properly report my small dividends without the forms, but it also caught a deduction I was about to miss related to my side gig. The system actually explained why I still needed to report small amounts and gave me specific instructions for my tax software. Definitely using this again next year before I file.
0 coins
Logan Greenburg
After reading this thread, I realized I had the same issue plus some other tax questions I couldn't get answered. I spent HOURS trying to get through to the IRS on the phone with no luck. Finally used Claimyr (https://claimyr.com) and they got me connected to an actual IRS agent in about 20 minutes. You can see how it works here: https://youtu.be/_kiP6q8DX5c The agent confirmed exactly what others are saying - yes, you need to report ALL dividend income regardless of amount, and yes, the $10 threshold is just about whether they send you the form. They also answered my other questions about some weird deductions. Saved me literally days of trying to get through the normal IRS phone system.
0 coins
Charlotte Jones
•How does this even work? The IRS phone system is notoriously impossible to get through. Is this legit?
0 coins
Lucas Bey
•Sounds like a scam to me. No way they can magically get through when millions of people can't reach the IRS during tax season. Probably just telling you what you want to hear.
0 coins
Logan Greenburg
•It's actually a pretty simple system - they use technology to navigate the phone tree and wait on hold for you, then call you once they have an agent on the line. So you don't have to waste hours listening to the hold music. Not a scam at all - they literally just connect you directly with actual IRS agents. I was skeptical too, but they don't give tax advice themselves, they just get you through to the real IRS faster. I asked the agent some specific questions about my situation that only the IRS would know how to answer.
0 coins
Lucas Bey
I have to eat my words from my previous comment. I was super skeptical about Claimyr but got desperate trying to resolve an issue with some missing dividend forms. Decided to give it a shot and... it actually worked. Got connected to an IRS rep in about 25 minutes when I had been trying for WEEKS on my own. The IRS agent confirmed that ALL dividend income needs to be reported regardless of amount. The $10 threshold is just for when companies are required to issue the 1099-DIV, not for when you need to report it. She also helped me figure out how to properly document the missing info in case of an audit. Completely worth it.
0 coins
Harper Thompson
To add another data point - I've been doing taxes for 20+ years and always report everything no matter how small. Think of it this way: the IRS already knows about this income because the companies report it in bulk, even if they don't send you individual forms. Better safe than sorry.
0 coins
Caleb Stark
•But how would the IRS know to connect those tiny dividends to your specific tax return if the company doesn't issue you a 1099? Don't they need the SSN reporting?
0 coins
Harper Thompson
•Even when companies don't issue individual 1099s for small amounts, they still report the payments to the IRS with your SSN attached through other reporting mechanisms. It's part of their aggregate reporting requirements. The IRS matching systems can still flag discrepancies, especially if you have a pattern of unreported income across multiple sources. While they might not catch $5 this year, their systems get more sophisticated every year, and they can go back several years if they find a pattern.
0 coins
Jade O'Malley
Has anyone tried just calling their brokerage directly? I had a similar issue and just called Fidelity. They gave me the dividend amount over the phone and sent me an unofficial statement I could use for my taxes. Didn't need the password or anything, just verified my identity.
0 coins
Hunter Edmunds
•Actually this is good advice. I just tried with Vanguard and they were able to help me get the exact dividend amounts without logging in. They ask security questions instead of password.
0 coins
Collins Angel
Great thread - this helped clarify my own situation! I just want to emphasize what others have said: the $10 threshold is purely about when companies are REQUIRED to send you a 1099-DIV form, not about your reporting obligations. The IRS expects all income to be reported, period. For what it's worth, I've always followed the "report everything" rule because the potential penalties for unreported income (even small amounts) can be way more than the actual tax owed. Plus, as someone mentioned, the IRS systems are getting more sophisticated at catching these discrepancies. If you're really stuck without access to your brokerage account, try calling them first like Jade suggested - most major brokerages can verify your identity without a password and give you the info you need. It's probably faster than trying to reset passwords during tax season when everyone's scrambling.
0 coins
Isaiah Thompson
•This is really helpful advice! I'm new to dealing with dividend income and was definitely confused about the reporting requirements. The distinction between when companies have to send forms vs. when we have to report income makes so much sense now. I appreciate everyone sharing their experiences with the different services and methods to get the information when you can't access your accounts. It's reassuring to know there are multiple ways to handle this situation properly. Better to be safe and report everything than risk issues down the road!
0 coins