BoA Keep the change program, 1099-INT?

[cael]

DH got a 1099-INT from Bank of America. It states he earned $80 interest income for last year, which confused me since we didn't have enough in any of our accounts last year to amass that much interest. I had him check into it w/ BoA since it seemed wrong, and they told him that isn't actually interest, it's what he saved via the keep the change program (I understand that as that's the amount put into his savings account from the program). So, why the eff do they send a 1099-INT for that if it isn't interest you need to claim? Wouldn't that confuse some people who probably claim it as interest & don't look into it? And am I wrong in deciding that we shouldn't even bring this form when we do our taxes this weekend? Thanks!

[Deleted]

Didn't they have a matching program at some time? Was that during 2011?

[cael]

I think they matched a certain amount for the first few months you were in the program maybe? he's had it for at least 2 or 3 years though so he wasn't new to it in 2011. I wish I'd gone to the bank with him to ask questions...

[mwcpa]

any increase in wealth is taxable income unless specifically excluded... if BofA gave you money to induce you into a program that offered that is income... if you do not want the money I'll take it and pay tax on it... I would end up with 48.00 for nothing... that's okay for me...

if BofA sent a 1099 and you do not include it, expect a notice known as a CP-2000 notice in 2 years with a bill... then a couple of year later the state you live in, well, they'll send a bill too... with interest and maybe some penalties to boot....

[chiver78]

I'm pretty sure BofA still matches the Keep the Change transfers. I thought the cap was lower than that, though. see what he comes back with for an answer, and just keep asking. that's a weird one.

my accountant told me that they will send a 1099 for any interest earned if the total interest is more than $10, and I've never seen one from BofA in all my years of banking there. (says a lot about their rates, eh?)

[Deleted]

It is interest. The program rounded you up when you did keep the change, so they 'gave' you money which = interest.