Unemployed in 2023, received 1099-INT but didn't file taxes. Should I file a year late?

I've been struggling to find work during 2023 and the only taxable income I received was from interest on my bank account, which resulted in a 1099-INT. My uncle who does taxes for the family casually mentioned I probably didn't need to file since I had no other income, but now I'm seeing something from the IRS saying that any interest income over $10 from a banking institution should be reported. I think the interest I earned was around $135 or so. Since I was unemployed and didn't have any W-2 forms, I didn't file any tax return at all last year. Now I'm wondering if I should file a late return just to report this 1099-INT? If I do need to file it, how would I even go about doing that at this point? Honestly, since the $135 was literally my only income for all of 2023 (sad, I know), I'm tempted to just not bother with it. But I don't want to get in trouble with the IRS either. Any advice?

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19 comments

Zoe Papadakis

•8M

It's actually pretty straightforward. Based on 2023 filing requirements, you only need to file a federal tax return if your gross income meets certain thresholds. For a single person under 65 in 2023, that threshold was $12,950. Your $135 interest income falls well below this. That said, it's always good practice to file even when not required because you might be eligible for refundable credits you don't know about. Plus, it creates a paper trail that can be helpful for future financial matters like loan applications. If you did want to file, you'd need to complete Form 1040 and Schedule B (for interest income). You can still file a 2023 return until April 15, 2027, without any penalties since you don't owe taxes (penalties only apply when you owe). You could use free tax software or download the forms from IRS.gov.

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Zoe Papadakis

•8M

You definitely won't get in trouble since you're under the filing threshold. The IRS is primarily concerned with collecting taxes owed, and in your case, you wouldn't owe anything. As for credits, it depends on your personal situation. Some common refundable credits include the Earned Income Tax Credit (though this typically requires earned income), the American Opportunity Credit (for education expenses), or the Child Tax Credit (if you have qualifying children). Without other income or specific circumstances, you might not qualify for much, which is why many people in your situation choose not to file.

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Jamal Carter

•8M

Just want to share my experience with a similar situation! I actually used https://taxr.ai when I was confused about whether to file for a year when I only had investment income. I uploaded my 1099-INT and it analyzed my filing requirements based on my specific situation. It confirmed I was under the filing threshold but also identified a state tax credit I qualified for that I would have missed otherwise. The AI explained exactly what forms I needed without all the confusing tax jargon. Saved me hours of research and worry!

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Jamal Carter

•8M

It's actually perfect for seemingly simple questions because those are the ones that have unexpected complications. It reviews both federal AND state requirements simultaneously, which is how I found out about a credit I qualified for. For state filing requirements, that's exactly where it was most helpful. Different states have different thresholds and rules, and it checks your specific state against your situation. In my case, my state had a lower threshold than federal, but I also qualified for a credit that more than offset what I would have owed.

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Mei Liu

•8M

I tried taxr.ai after seeing the comment here. I was in almost the exact same situation as you - only had about $175 in interest income for 2023 and was freaking out about not filing. The tool confirmed I was under the federal threshold but caught that my state (Oregon) actually requires filing at a much lower income level. It also showed me how to claim a working family household credit I qualified for, so I ended up getting a small refund instead of owing! The document explained exactly which forms to fill out and what to enter where. Definitely worth checking even for what seems like a simple situation.

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Liam O'Sullivan

•8M

If you're worried about the IRS coming after you, I've been there! After not hearing anything about a missing return for months, I finally decided to call the IRS to confirm my situation. Spent THREE DAYS trying to get through their phone system with no luck. Then I found https://claimyr.com which got me connected to an actual IRS agent in under 20 minutes. You can see how it works here: https://youtu.be/_kiP6q8DX5c. The agent confirmed I didn't need to file for a year when I only had minimal interest income and no other earnings. Total peace of mind! They even checked if I had any prior issues on my account (I didn't).

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Liam O'Sullivan

•8M

It uses an automated system that navigates the IRS phone tree and holds your place in line. When it gets close to connecting with an agent, it calls you so you can take over the call. Not a "line-cutting" service - you still wait your turn, but the system waits instead of you. The reason everyone isn't using it is simply because not everyone knows about it yet. I was skeptical too, but after trying to get through on my own for days, I was desperate enough to try it. Was surprised when it actually worked exactly as advertised. The peace of mind from speaking directly with an IRS agent about my situation was absolutely worth it.

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Giovanni Conti

•8M

I need to eat crow here. After dismissing Claimyr as too good to be true, I tried it when I got a CP2000 notice about missing interest income from 2022. Was connected to an IRS agent in about 15 minutes after spending literally hours trying on my own the previous week. The agent confirmed I didn't need to respond to the notice since I was under the filing threshold that year, just like the original poster's situation. They even documented the call in my account so there's a record of the resolution. Saved me from filing an unnecessary return and possibly triggering more scrutiny. I'm honestly shocked this service exists and actually works.

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Fatima Al-Hashimi

•8M

You're right - I should have been more clear. What I meant was that while technically all income is taxable, the filing requirements determine whether you actually need to submit a return. What I was trying to say is that the IRS enforcement actions typically focus on people who owe taxes, not people who are under the filing threshold and would get a refund or owe nothing. But you're absolutely correct that there are specific thresholds that determine the legal requirement to file.

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Isabella Santos

•3M

I'm glad you're being proactive about this! As others have mentioned, you're definitely under the filing threshold with just $135 in interest income, so you won't face any penalties from the IRS. One thing to consider though - even if you don't file for 2023, make sure you keep that 1099-INT document for your records. Sometimes the IRS receives copies of these forms and might send you a notice years later asking about unreported income. Having the documentation showing your total income was well below the filing threshold will help resolve any questions quickly. Also, since you mentioned you're still looking for work, you might want to file anyway if you think you'll have more complex tax situations in future years. Getting familiar with the process when stakes are low (like your current situation) can be helpful when you do have more substantial income to report. The good news is you have until April 2027 to decide whether to file a 2023 return, so no rush to figure it out immediately!

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