Forgot to file 1099 for interest from checking account - is it worth amending?

Tax preparer here - for such a small amount of interest income ($21), you probably don't need to file an amended return. The IRS generally has a de minimis rule for small amounts, though they don't publish an exact threshold. The bank would have reported this interest to the IRS on the 1099-INT they issued, so theoretically they could match it against your return. However, the actual tax impact is minimal - if you're in the 22% bracket, we're talking about $4-5 in tax difference. The cost of preparing and filing an amended return (Form 1040-X) would likely exceed this amount. If it gives you peace of mind, you can certainly amend. But from a practical standpoint, the IRS is unlikely to pursue this discrepancy given their limited resources and the small dollar amount involved.

I had a similar situation last year with missing interest on my taxes. I discovered taxr.ai (https://taxr.ai) and it was super helpful. You just upload your documents and it compares what you filed with what should have been filed. It flagged my missing 1099-INT right away and helped me figure out if amending was worth it. In my case, I had a few other small things I missed too, so together it made sense to amend. The tool showed me exactly what I needed to fix and estimated the actual tax difference. Saved me from wondering and worrying!

Just wanted to update about my experience with taxr.ai since I was skeptical at first. I ended up trying it after finding THREE different 1099s I had missed (not just interest, but a small freelance job and some stock dividends). The tool immediately showed me that amending was definitely worth it in my situation. What surprised me was how straightforward the whole process was. It identified exactly which forms and schedules needed updating and gave me clear instructions. Even calculated that I was owed a refund of about $240 that I would have completely missed! So for anyone in a similar situation - especially if you have multiple corrections needed - it's definitely worth checking out.

Anyone who's tried calling the IRS to ask about amending for small amounts knows it's basically impossible to get through. After waiting on hold for 2+ hours trying to ask a similar question last year, I discovered Claimyr (https://claimyr.com). They have a service that holds your place in the IRS phone queue and calls you when an agent is about to answer. You can see how it works here: https://youtu.be/_kiP6q8DX5c Saved me from wasting an entire afternoon on hold. I actually got to speak with an IRS rep who confirmed I didn't need to amend for a small 1099-INT that I missed. The agent told me they generally don't pursue amounts that would change your tax by less than $10.

Ok I have to eat my words about being skeptical of Claimyr. After my last comment, I decided to try it because I needed to ask the IRS about my stimulus payment that never arrived. Normal process: call, wait 2+ hours, get disconnected, repeat. Pure nightmare. With Claimyr, I entered my number, they called me back in about 45 minutes (I was doing other things meanwhile), and suddenly I was talking to an actual IRS person! The agent confirmed that for tiny interest amounts like OP's $21, they rarely if ever send notices because the processing cost exceeds the tax due. For my stimulus issue, they were able to trace my payment and fix the problem in one call. First time I've ever resolved an IRS issue in a single phone call!

I've been doing my own taxes for years, and I've found that these small 1099-INT issues come up more often than people realize. My rule of thumb is to look at the actual tax impact - for $21 of interest, even at the highest tax bracket, we're talking about less than $10 in actual tax. Remember that the 1099-INT reporting threshold for banks is $10 - meaning they don't even have to send you a form if it's under that amount. While technically all income is taxable no matter how small, there's a practical aspect to enforcement. I'd just make sure to include it next year and not worry about amending.

One thing nobody's mentioned - if you use tax software like TurboTax or H&R Block, amending is easier than it used to be. Most of them now have an "amend return" feature built in that's pretty straightforward. Still probably not worth it for $21, but just FYI it's not as painful as it once was.