Does my client have to report a 1099-misc with box 3, other income entered if its from waived atm fees, no money was ever received.

[Just-Lisa-Now-]

Was this for their business?

[mocha2103]

No just individual regular checking account

[Just-Lisa-Now-]

Kind of weird to get a 1099 for this.  It shouldn't be taxable.  How much money are we talking about?

[mocha2103]

686.00. Its almost like the bank had to file a 1099-K and mistakenly sent out a 1099-misc to my client?

[George4Tacks]

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@mocha2103 wrote:

686.00. Its almost like the bank had to file a 1099-K and mistakenly sent out a 1099-misc to my client?

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I would have the client contact the bank to clarify.  This sounds a bit like the "free toaster, if you open a bank account." issue that did create an income for the free toaster. If it is on a 1099, it needs to be reported. Why would the bank issue 1099-K, if not for a business.

I have made two entries for this type of thing.

1. 1099-MISC from stupid bank + $XXXX
2. 1099-MISC from stupid bank  - $XXXX