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How do I record small deposits (e.g. $0.05, $0.07) as a result of bank verification for purposes of accounting? As income? Negative expenses?

JTP - Apologise to Monica
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Jake Petroules
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1 Answers1

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If they don't withdraw it back (some institutions do), then you can write it down as income. Categorizing it as "interest income" seems the closest fit to me.

littleadv
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  • Adding update: I opened an account last year, and the verification amounts weren't withdrawn. They ended up being added to my 1099-INT from that institution, so I guess the banks treat it as interest as well. – littleadv May 22 '13 at 18:20
  • If they do pull it back out, call the withdrawl interest paid. Of course the fact is that these small amounts make no practical difference, but. – keshlam Nov 06 '15 at 05:46
  • If they pull it back out then there's no income and no expense. It's a reversed transaction. – littleadv Nov 06 '15 at 07:10