Did you receive Form 1099-INT this tax year? Here’s what is included in this important tax document and how you should use it when filing your federal income tax return.
At a glance:
- Form 1099-INT reports any interest income you earned.
- You’ll receive this form if you earn at least $10 in interest during the tax year.
- Most interest is taxable and should be reported as ordinary income on your federal tax return.
What is Form 1099-INT from the IRS?
If you received Form 1099-INT from a financial institution during tax season, it means you had interest income during the tax year. Payers send copies of Form 1099-INT to you and the Internal Revenue Service (IRS), so it’s important you report your interest income on your tax return.
Interest income can come from various sources, such as savings accounts at your bank or credit union, certificates of deposit (CDs), Treasury bills, and other interest-bearing accounts. The IRS requires institutions to report this income if it exceeds $10 during the year.
Example of Form 1099-INT
Here is an example of what Form 1099-INT looks like and the information that’s included on the tax form:
Form 1099-INT instructions
What information is on IRS Form 1099-INT?
Form 1099-INT includes several key pieces of information for taxpayers:
- Payer’s information: The name, address, and taxpayer identification number (TIN) of the issuer paying the interest.
- Recipient’s information: Your name, address, and Social Security number (SSN) or TIN will also be included on the tax form.
- Interest income: In box 1, you’ll find the amount of taxable interest income you earned over $10, which is the primary figure you’ll need to report on your tax return. This box can also include interest of $600 or more earned in the course of a trade or business.
- Early withdrawal penalties: Box 2 reports any principal or interest forfeited due to early withdrawal of funds, if applicable. This amount can be deducted from your gross income.
- Interest on U.S. Savings Bonds and Treasury obligations: In box 3 you’ll find the amount of interest earned from U.S. Savings Bonds, as well as Treasury bills, notes, and bonds issued by the federal government. This interest isn’t included in the amount in box 1.
- Federal income tax withheld: Box 4 shows any federal income tax that was withheld from your interest income. This can happen if you don’t provide the payer with your TIN.
- Investment expenses: Box 5 shows certain fees or expenses related to the investment.
- Foreign tax paid: Box 6 reports any foreign tax paid on the interest income.
- Tax-exempt interest: Box 8 shows interest income that is exempt from federal income tax, such as municipal bond interest.
If you have any info in boxes 9 to 17, it’s typically for a very specific purpose. Not to worry — TaxAct® will help you report your interest income correctly when you file using our tax preparation software.
When you receive a 1099-INT, you’ll use the information it provides to complete your tax return. Here’s a step-by-step guide:
- Gather your forms: Collect all the 1099-INT forms you’ve received from various financial institutions. You may receive more than one if you have multiple interest-earning accounts.
- Review the information: Ensure that all the details on the form are correct. If you spot any errors, make sure to contact the issuer for a corrected form.
- Include interest income on your tax return: TaxAct will walk you through reporting your interest income step-by-step when you e-file with us.
FAQs about Form 1099-INT
What is a 1099-INT form used for?
The primary purpose of Form 1099-INT is to report interest income to the IRS. This form helps ensure that you and the IRS are on the same page regarding the amount of interest income you need to report on your tax return. When you file your taxes, you’ll need to include this information to determine your taxable income accurately. For example, if you have an interest-earning savings account, you may get Form 1099-INT from your bank showing the total amount of interest you earned that year.
Who needs to fill out a 1099-INT?
As a taxpayer, you don’t need to fill out a 1099-INT yourself. Instead, the financial institution or entity that paid you the interest is responsible for completing and sending this form to both you and the IRS. You’ll typically receive your copy of Form 1099-INT by Jan. 31.
What is the 1099-INT tax rate for interest income?
Any taxable interest you earn is taxed at the same rate as ordinary income, meaning the tax rate will vary based on your tax bracket. If you’re unsure what tax bracket you’re in, try out our Tax Bracket Calculator.
Do I have to file a 1099-INT if under $600?
The $600 threshold only applies to businesses — payers must report interest income of at least $600 paid in the course of a trade or business.
For individuals, the IRS requires financial institutions to issue a Form 1099-INT if the interest earned is $10 or more. Note that this 1099-INT threshold is for payers — you still need to report any interest income earned, even if it’s less than $10.
What if I don’t receive a 1099-INT?
Even if you don’t receive a 1099-INT, you’re still responsible for reporting all interest income. Be sure to keep track of your earnings throughout the year, especially if you have multiple accounts earning interest.
Can I receive a 1099-INT electronically?
Yes, many financial institutions offer the option to receive tax forms electronically. This can be faster and more convenient, reducing the risk of lost mail.
What should I do if I lose my 1099-INT?
If you lose your 1099-INT, contact the issuing institution to request a replacement. You can also check your account statements for interest income details or see if your financial institution offers an electronic version.
Are there any penalties for not reporting interest income?
Failing to report interest income can result in penalties and interest charges if the IRS finds out, so it’s important to include all income on your tax return to avoid these issues.
How to File Form 1099-INT with TaxAct®
When you e-file using TaxAct’s intuitive tax preparation software, we can help you report Form 1099-INT on your income tax return. We ask you simple questions about your 1099-INT form to ensure you accurately report your interest income to the IRS.
To report Form 1099-INT in the TaxAct program:
- From within your TaxAct return (Online or Desktop), click Federal. (On smaller devices, click in the top left corner of your screen, then click Federal.)
- Click the Investment Income dropdown, then click Interest income (Form 1099-INT).
- Click + Add Form 1099-INT to create a new copy of the form, or click Edit to edit an already-created form. (Desktop program: click Review instead of Edit).
- Continue with the interview process to enter your tax information.
The bottom line
Understanding Form 1099-INT and how to handle it is essential for accurate tax reporting. Knowing what this form means and how to report your interest income can help ensure a smoother tax filing experience and avoid potential issues with the IRS. Always keep detailed records of your interest income and consult with a tax professional if you have any questions or concerns.