Form 1099-INT: Interest Income

A 1099-INT is an IRS tax form used to report interest income you earned during the tax year. It's issued by banks, brokerage firms, mutual funds, and other financial institutions that paid you at least $10 in interest. You should receive a copy of the form by January 31st of the following year.

Who Receives a 1099-INT?

Anyone who earned $10 or more in interest during the tax year (except for certain exceptions). Common recipients include:

  1. Individuals with savings accounts
  2. Investors with bonds or interest-bearing securities
  3. Taxpayers who received tax refunds with accrued interest

What Information Does a 1099-INT Contain?

A typical 1099-INT will include the following information:

A. Payer information: Name, address, and phone number of the financial institution that paid the interest.

B. Recipient information: Your name, address, and Social Security number (SSN) or Taxpayer Identification Number (TIN).

C. Federal income tax withheld (Box 4): Applicable only if the payer withheld federal income tax from your interest income.

D. Interest income (Box 1): The total amount of interest you earned during the year. This is the key figure you'll need to report on your tax return.

E. Early withdrawal penalty (Box 2): Applies if you withdrew funds from a time deposit (e.g., CD) before the maturity date and incurred a penalty.

F. Investment income from U.S. Savings Bonds (Box 3): Reports interest earned on U.S. Savings Bonds.

G. Foreign tax withheld (Box 8): Shows any foreign taxes withheld on your interest income.

What kind of interest is reported on a 1099-INT?

  • Interest earned on savings accounts, certificates of deposit (CDs), and money market accounts.
  • Interest from U.S. Treasury bills, bonds, and notes.
  • Interest earned on corporate bonds.
  • Interest accrued from certain types of investments held in brokerage accounts (but not dividends).

How to Use Form 1099-INT

  • Compare the information on your 1099-INT with your own records to ensure accuracy.
  • Use the interest income amount (Box 1) to report your interest income on your tax return. The specific line number will depend on your filing status and tax situation.
  • Keep your 1099-INT for your tax records for at least three years.

Important Points to Remember About Form 1099-INT:

  • Not receiving a 1099-INT doesn't necessarily mean you don't owe taxes on your interest income. You're still responsible for reporting all interest income received, even if you don't receive a form.
  • There may be tax-exempt interest income, such as interest from municipal bonds issued by your state or local government.