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Updated November 16, 2023 Reviewed by Reviewed by Janet Berry-JohnsonJanet Berry-Johnson is a CPA with 10 years of experience in public accounting and writes about income taxes and small business accounting.
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Part of the Series Federal Tax Forms1099 Forms INT–OID
CURRENT ARTICLE1099 Forms PATR–SA
Form 1099-INT is an Internal Revenue Service (IRS) tax form that reports interest income. Form 1099-INT is issued by all entities that pay interest income to investors during the tax year. It includes a breakdown of all types of interest income and related expenses. Payers must issue a 1099-INT by Jan. 31 of the new year for any party to whom they paid at least $10 of interest during the preceding year. One copy goes to the IRS. Another copy is sent to the taxpayer.
Amounts paid to taxpayers that must be reported on a 1099-INT include:
Much less common amounts that are recorded on Form 1099-INT also include:
Interest income is any amount paid by banks, investment houses, mutual fund companies, and financial institutions to account holders who deposit money into savings accounts, investments, and other interest-paying ventures. Form 1099-INT must be filed:
The interest paid is considered to be taxable income and must be reported to the IRS on annual tax returns every year it's earned. The interest-paying entity must file a 1099-INT on any interest over $10 paid during the year. The form must be reported to the IRS and sent to each interest recipient by Jan. 31 of each year.
The amounts and types of interest impact which tax form is to be used. Taxpayers who receive over $1,500 of taxable interest must list all of their payers on Part 1 of Schedule B on Form 1040. Form 1099-INT will always report interest paid as cash-basis income. Income that's owed but not yet paid can't be reported on this form.
Taxpayers who receive Form 1099-INT may be required to report certain income on their federal tax returns. Taxable interest is taxed at the same rate as ordinary income at the same rate as an individual's salary or wages. This excludes tax-exempt income or income that is exempt at various tax reporting levels.
Most interest income is reported on Part 1 of Schedule B: Interest and Ordinary Dividends. The taxpayer must list their taxable income as part of a list of all forms of taxable interest. This amount is aggregated and interest earned from Series EE and Series I U.S. bonds is excluded. This new subtotal is reported on Form 1040, Line 2b.
Interest is a component of a taxpayer's adjusted gross income (AGI) when it's added to wages, salaries, tips, and other forms of income.
Form 1099-INT is used to remit information relating to the amount of interest paid or received during a tax year. Not all sections of Form 1099-INT must be filled out. Only relevant information that pertains to a specific taxpayer must be completed.
Form 1099-INT calls for the payer's name, street address, city, state, country, ZIP code, and telephone number. The payer also needs to report its taxpayer identification number (TIN) on the form.
Form 1099-INT also calls for the recipient's information. The payer will usually have obtained this information in advance. For example, the institution asks for your contact information when you're setting up a new bank account so it's able to adequately issue Form 1099-INT at the appropriate time.
Form 1099-INT reports the recipient's TIN, name, street address, city, state, country, and ZIP code. The issuing party may list the individual's account number if multiple accounts are to receive a different Form 1099-INT although some lending institutions may aggregate the forms.
Box 1 of Form 1099-INT reports the taxable amount of interest. This amount does not include amounts reported in Box 3. This box includes amounts of $10 or greater paid to an individual's savings account, bank deposits, dividends paid by a life insurance company, and various other types of interest. This box also includes interest of $600 or more paid in the course of a trade or business.
Box 2 of Form 1099-INT reports the amount of principal or interest forfeited because of the early withdrawal of funds. This early withdrawal must have been tied to a time deposit that had a stipulated maturity date. The amount reported in Box 1 is not reduced by the forfeiture deductible, and the forfeiture is deductible from gross income by the recipient.
Box 3 of Form 1099-INT reports the amount of interest earned on U.S. Savings Bonds, Treasury bills, Treasury notes, and Treasury bonds issued by the U.S. government. This interest is not included in the amount of interest earned and reported in Box 1.
Box 4 of Form 1099-INT reports the amount of taxes withheld from interest payments. A taxpayer must have a portion of the interest earned withheld from their payments if they don't promptly provide their TIN when requested. The applicable rate of withholding will vary. The IRS offers guidance on requesting the recipient's TIN as part of federal tax form instructions.
The next commonly used box on Form 1099-INT is Box 8, which reports the amount of tax-exempt interest. This type of interest is most often earned off of obligations issued by a state or other governmental entity. This amount is not taxable and is not to be included in the taxpayer's gross income.
Form 1099-INT recipients may not have to pay income tax on the interest a payer reports, but may still need to report it on their return. The IRS uses the information on the form to ensure the interest earner reports the correct amount of interest income on their tax return.
Form 1099-INT has 17 boxes (in addition to the areas for the payer and recipient information). Many of these boxes are for very specific purposes. Consider consulting a local tax advisor to help you if you receive Form 1099-INT with information in any of the other boxes.
These other areas of Form 1099-INT cover foreign taxes, private activity bond interest, market discounts, and more tax-exempt investments. Boxes 15, 16, and 17 are also used by taxpayers who participate in the combined Federal/State Filing Program to provide state tax information.
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Not receiving a form doesn't absolve taxpayers from having to report their interest income. Individuals who don't receive their 1099-INT should contact the issuer and get a new one issued so they can include the interest received on their tax returns. The minimum amount to issue a 1099-INT is $10 but you must report your interest income on Form 1040 each year even if it's less than this amount.
Some types of entities or taxpayers are not required to receive Form 1099-INT even if they receive interest payments. This list of exempt entities includes corporations, tax-exempt organizations, any individual retirement arrangement, certain health accounts, U.S. agencies, and other payees.
In addition, Form 1099-INT is only used for interest issued by an individual from sources inside the United States paid inside the United States. There are specific criteria that make interest payments exempt if paid by non-U.S. payers or related to non-U.S. instruments.
Form 1099-INT is used for interest payments but there may be conditions on when interest is actually paid. Consider payments where an individual is credited illiquid interest or is not allowed to withdraw interest earned.
In general, interest is paid when it is credited to a taxpayer without substantial limits or restrictions. Interest must be made available so the taxpayer can draw on it at any time. For savings bonds or other demand obligations, interest is paid when the obligation is presented for payment (i.e. when a coupon is detached from a bond and presented for payment).
Form 1099-INT is a tax form issued by interest-paying entities, such as banks, investment firms, and other financial institutions, to taxpayers who receive interest income of $10 or more. The information recorded on the form must be reported to the IRS.
Form 1099-INT must be filed by any entity that pays interest, such as banks, brokerages, investment firms, mutual funds, and other financial institutions. They must file the form to anyone who receives interest income of at least $10, when they withhold and pay foreign taxes on interest, and whenever the issuer withholds federal income tax without refunding it. One copy must be sent to the IRS and another to the taxpayer.
Interest-paying entities must submit Form 1099-INT by Jan. 31. Anyone who doesn't receive one should contact the issuer to get another copy. Be mindful that many lending institutions may offer Form 1099-INT as a downloadable form. Upon logging into your online banking portal, search for 'Tax Forms' or a similar area of reporting.
Form 1099-INT often reports taxable income earned during the year. This information is remitted to the IRS and must be included as ordinary income on your tax return. Disregarding tax-exempt income, taxpayers are required to report the contents of Form 1099-INT on their federal tax returns.
Taxpayers receive Form 1099-INT because they earned more than $10 of interest from the savings in their bank account. Lending institutions are required to issue Form 1099-INT to account holders who earn this threshold. There are many other situations why a taxpayer may have received Form 1099-INT, all of which relate to interest paid to the taxpayer.
Form 1099-INT is used to remit tax information relating to the amount of interest paid and received. Payers have certain thresholds and conditions to meet to issue Form 1099-INT copies to taxpayers and the IRS. On the other hand, receiving a Form 1099-INT often means a taxpayer has taxable interest income it must report on its federal income tax return.
Correction—Jan. 31, 2024: This article was updated to indicate that interest reported in Box 3 of Form 1099-INT is not included in the interest earned and reported in Box 1.
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Description Part of the Series Federal Tax Forms1099 Forms INT–OID
CURRENT ARTICLE1099 Forms PATR–SA
A filing extension is an exemption made for taxpayers who are unable to file their federal tax return by the regular due date.
A flow-through entity is a legal business entity that passes income to the owners and/or investors of the business. It's sometimes referred to as a disregarded entity.
A qualified higher education expense is a tax credit for the parents of students attending a college or other post-secondary institution.
A widow(er)'s exemption is one of several forms of state or federal tax relief available to a surviving spouse in the period following their spouse's death.
Form 1099-LTC is used by individual taxpayers to report long-term care benefits to the IRS, including accelerated death benefits.
Form 1041 is an IRS tax return used by trustees or personal representatives to report income over $600 generated by assets held in an estate or trust.
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