[zulumimi]

Hello!

I am 52 yrs. Old and have filed some variant of a IRS 1040 form all of my life. My income over recent years has been between $38,000 and $43,000.
In 2007, I received $980.00 in an early distribution on a 401K. I am inclined to report it but am worried that I have never reported interest income (under 100.00 annually) in all of my tax filing years! I've never taken advantage of some deductions, either, to be fair.
Would reporting this amount automatically make the IRS look into my past years taxes?

Thanks for your input!
Donna

[ScottGem]

Did you get a 1099 for the distribution? If so, then you report it.

[The Texas Tax Expert]

Hello!

I am 52 yrs. old and have filed some varient of a IRS 1040 form all of my life. My income over recent years has been between $38,000 and $43,000.
In 2007, I received $980.00 in an early distribution on a 401K. I am inclined to report it but am worried that I have never reported interest income (under 100.00 annually) in all of my tax filing years! I've never taken advantage of some deductions, either, to be fair.
Would reporting this amount automatically make the IRS look into my past years taxes?

Thanks for your input!
Donna

You should be reporting all income that you are required by law to report. Even when you don't receive a form documenting it, interest income is still (generally) taxable.

[AtlantaTaxExpert]

While I agree that the interest income should be reported, that amount of interest involved (less than $100 annually) is so small that the IRS will not even bother sending you a notice about it.

It falls into the "de minimus" category.