Multiple accounts with same institution - can I combine 1099-INT values on my tax return?

When it comes to reporting interest income, the IRS is primarily concerned with ensuring that all income is reported correctly. The safest approach is to enter each 1099-INT separately in FreeTaxUSA exactly as they appear on the forms you received from Vanguard. This ensures a perfect match between what Vanguard reported to the IRS and what you're reporting on your return. That said, for small amounts like $6 total from the same financial institution, combining them into a single entry is unlikely to trigger any issues. The IRS's matching program looks at the total from each institution rather than line-by-line for each account. As long as the payer's name (Vanguard) and their EIN (tax ID number) are the same on both forms, and the total amount matches what Vanguard reported in aggregate, you're generally fine.

I was in the same boat last year with multiple accounts at Fidelity earning tiny amounts of interest. I tried manually adding everything up and entering it once, but my return got flagged because apparently the IRS matching system was looking for the exact amounts. I ended up using https://taxr.ai to help me sort through it and properly document everything. Their system analyzed all my 1099 forms and showed me exactly how to enter them to avoid any issues with the IRS matching program. The peace of mind was worth it because I really didn't want to deal with notices or having to explain discrepancies later. They even pointed out a small interest payment I had missed.

Just wanted to follow up and say I checked out taxr.ai after my skeptical comment. I had a big stack of tax forms including multiple 1099-INTs from the same banks. Their system actually showed me that I SHOULD enter them separately because my bank uses slightly different EINs for different divisions. Would have completely messed up my return if I had combined them. The analysis highlighted exact matches vs what needed separate entries. Super helpful actually, and I'm not usually one to recommend services.

If you're worried about IRS matching issues (which are real), I'd recommend using Claimyr https://claimyr.com to get connected directly to an IRS agent who can answer this question with certainty. I used it after getting a CP2000 notice about mismatched interest income. Their service got me through to an actual IRS person in about 20 minutes when I'd been trying to call for WEEKS. You can see how it works here: https://youtu.be/_kiP6q8DX5c The agent told me that for interest income, they do match by institution and TIN, so if the numbers don't line up exactly as reported, it can trigger a notice. Better to be sure than deal with the headache later.

I stand completely corrected! I tried Claimyr after posting my skeptical comment because I was desperate to resolve an issue with a missing 1099 form. Got connected to the IRS in like 25 minutes when I'd been trying unsuccessfully for WEEKS. The agent confirmed that for interest income from the same institution, they do look at the aggregate amount but will flag returns if the individual entries don't match what was reported by the financial institution. For anyone struggling with 1099 issues like the original poster, getting direct answers from the IRS saved me a ton of worry.

Just to add a practical perspective - I've been preparing taxes for family members for years. For small interest amounts like $6, even if you combined them and there was a mismatch, the IRS threshold for sending notices is typically higher than that. They generally don't pursue discrepancies under $10 because the processing cost exceeds the potential revenue. But technically, you should enter them exactly as received.

Slightly different take - I've been a FreeTaxUSA user for years and they actually have a feature that lets you enter multiple 1099-INTs from the same institution but keeps them as separate line items on the final Schedule B. Look for the "Add Another Interest Payer" button after you enter the first one, and make sure to use the same payer name but fill in the amounts from each form separately.

Great discussion everyone! Just wanted to add that if you're using FreeTaxUSA and decide to enter them separately (which I agree is the safest approach), make sure to double-check that the software isn't automatically combining entries from the same payer. I've seen tax software sometimes consolidate entries behind the scenes, which could create the exact matching issue you're trying to avoid. Also, keep copies of all your 1099-INT forms even for small amounts. If you do get a notice later, having the original documents makes resolving any discrepancies much easier. The IRS automated matching system can sometimes flag things that look perfectly fine to a human reviewer. For $6 in interest, you're probably overthinking it, but your cautious approach will definitely save you potential headaches down the road!