Forgot 1099-INT on Taxes in 2026? Amendment Guide & Penalty Information
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What Happens When You File Taxes Without a 1099-INT
Discovering you forgot to include a 1099-INT from your High-Yield Savings Account (HYSA) after filing your 2026 tax return can definitely cause some anxiety. The good news is that this is a relatively common mistake, and the consequences depend on several factors including the amount of unreported income and how quickly you address it.
When you file your taxes electronically or through tax software like tax preparation software, the IRS receives copies of all the 1099 forms that financial institutions report. This means the IRS will eventually know about that forgotten 1099-INT, even if you don't initially report it. The question isn't whether they'll find out, but rather how you handle the situation.
Should You Amend Your 2026 Tax Return for $74.74?
Whether you need to file an amendment for a small amount like $74.74 depends on several practical considerations. While technically any unreported income should be reported, the IRS has enforcement priorities, and very small amounts of unreported interest income typically fall lower on their list.
However, the safer approach is to file an amendment form (Form 1040-X) once your original return has been processed. Most tax professionals recommend waiting until after your initial return is accepted and processed before filing an amendment, which aligns with what FreeTaxUSA recommends. This typically takes a few weeks after you file.
For a $74.74 income discrepancy, you'll likely owe tax on that amount at your marginal tax rate. If you're in the 12% tax bracket, that's roughly $9 in additional taxes. This small amount makes the amendment decision less costly than it would be for larger unreported income.
Understanding 1099-INT and HYSA Account Reporting
A 1099-INT is an informational return that banks and financial institutions send to you and the IRS reporting interest income. High-Yield Savings Accounts have become increasingly popular because they offer better interest rates than traditional savings accounts, which means they generate more interest income that must be reported.
Banks are required to send 1099-INT forms for any account that generates $10 or more in interest income during the tax year. Since your account generated $74.74, you definitely received this form from your financial institution. It should have arrived by January 31, 2027, if you don't already have it.
The important thing to understand is that the bank reports this information directly to the IRS, not just to you. When the IRS cross-references your filed return with the 1099-INT they received from your bank, they'll notice the discrepancy. This is where filing an amendment becomes important for your tax record integrity.
Will You Face Penalties for This Mistake?
The penalty situation for a forgotten 1099-INT depends on several factors:
- Small amounts under $25,000: The IRS typically doesn't assess failure-to-file or failure-to-pay penalties for minor discrepancies when you proactively file an amendment.
- Accuracy-related penalties: These typically apply to substantial understatements of income (generally more than $5,000 or 10% of your reported income), so a $74.74 omission likely wouldn't trigger this.
- Fraud penalties: These apply only to intentional tax evasion, not honest mistakes like forgetting one 1099 form.
- Interest charges: You will owe interest on any unpaid taxes from the original due date, even if penalties don't apply. This is typically charged at the federal rate plus 3% annually.
For your $74.74 situation, if you file an amendment promptly, you're unlikely to face any penalties. The IRS is generally forgiving of honest mistakes when taxpayers take corrective action voluntarily.
The Timeline and Interest Calculation
Interest accrues from the original tax deadline (April 15, 2026) until you pay the additional tax through your amendment. For a $9 additional tax liability on that $74.74 interest income, the interest charge would be modest—likely less than $1 if you file the amendment within a few months of your original filing.
Step-by-Step Guide to Filing Your 2026 Amendment
Here's how to handle your 1099-INT correction:
Step 1: Gather Your Documentation
Locate your original 2026 tax return and the 1099-INT form from your HYSA provider. You'll need both to complete your amendment accurately.
Step 2: Wait for Return Processing
Allow at least 2-3 weeks for the IRS to process and accept your original return before filing the amendment. This prevents processing delays and potential confusion at the IRS.
Step 3: Complete Form 1040-X
Form 1040-X is the amended U.S. individual income tax return form. You'll need to:
- Report your original figures (what you filed)
- Report the corrected figures (including the $74.74 interest income)
- Show the differences between the two
- Explain the reason for the amendment in the space provided
Step 4: File Your Amendment
You can file the amendment electronically through FreeTaxUSA or another tax software provider that offers amendment filing, or you can print and mail Form 1040-X to the address specified on the form instructions. E-filing is typically faster.
Step 5: Make Additional Payments
If you owe additional tax (which you will for the $74.74 interest income), you can pay it with your amendment filing or through IRS Direct Pay online.
Key Takeaways
- The IRS will eventually learn about the forgotten 1099-INT because banks report directly to them
- Filing an amendment is the appropriate course of action to keep your tax record accurate and avoid future issues
- For a $74.74 omission, you're unlikely to face penalties if you file an amendment promptly
- Your additional tax liability will be roughly 12-22% of $74.74 depending on your tax bracket, plus minimal interest
- Wait until your original 2026 return is accepted before filing your amendment
- Filing an amendment shows the IRS you're compliant and honest about errors
FAQs About Amending Your 2026 Tax Return
How long do I have to file an amendment for this 1099-INT?
You can file an amended return at any time, but the sooner the better. Generally, you have 3 years from the original filing deadline to claim a refund or file an amendment to pay additional tax. Since the 2026 tax deadline is April 15, 2027, you have until April 15, 2030, to file your amendment, though filing sooner is advisable.
Can the IRS audit me for this one small 1099-INT?
An isolated $74.74 1099-INT discrepancy is highly unlikely to trigger an audit. The IRS has limited resources and focuses on larger discrepancies and more complex tax situations. By filing an amendment voluntarily, you're actually reducing the likelihood of any IRS contact.
Do I need to file an amended return for such a small amount?
While the IRS likely won't penalize you heavily for the omission, filing an amendment is the right move for several reasons: it ensures your tax record is accurate, it demonstrates good faith compliance, and it protects you from potential future complications. The cost and effort of filing the amendment (usually under $15 if you e-file) is worth the peace of mind.