Form 1099-INT: What It Is and Why You Received One

alfexe / Getty Images/iStockphoto

Commitment to Our Readers

GOBankingRates' editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services - our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our products and services review methodology.

20 Years
Helping You Live Richer

Reviewed
by Experts

Trusted by
Millions of Readers

When it comes to managing your taxes, understanding the forms you receive is half the battle. Among these, Form 1099-INT stands out if you’ve had any dealings with interest income over the past year. Read on to learn who gets Form 1099-INT and how to incorporate it into your tax filings.

What Is Form 1099-INT?

If your earnings in interest have reached $10 or more, you’ll see this form come tax season. It serves as an official record for the IRS to track the interest you’ve accumulated from various sources such as savings accounts, bonds or other interest-bearing investments.

Here are some key points to know:

• Banks, financial institutions and other entities that pay you interest are responsible for sending out Form 1099-INT. It’s their way of saying, “Here’s what we’ve paid you, and yes, we’ve also told the IRS.”
• This form is not just for traditional savings accounts — it also covers interest from bonds Treasury bills and even some types of life insurance policies.
• If your total interest income from one source exceeds $10, you’ll be on the receiving end of this important document.

When Do You Receive a 1099-INT?

If you earned at least $10 of interest in a tax year, you’ll usually receive your 1099-INT Form by January 31 after the close of the tax year. But depending on the bank or financial institution, you might see this form arrive earlier or later.

Good To Know

You can choose to send the form either electronically or through physical mail — whichever works best for you.

How To Read a 1099-INT Form

As with all tax forms, the 1099-INT Form may seem confusing at first. Below is a breakdown of what each box on the form means:

As you look through the document, check for any mistakes. If you spot an error, reach out to the financial institution right away.

How To Report 1099-INT on Your Tax Return: 5-Step Guide

Filing your taxes with Form 1099-INT involves a few key steps to ensure you’re accurately reporting your interest income:

Step 1: Gather Your Forms

If you’ve earned interest from different sources, you may receive multiple 1099-INT forms. Make sure to collect every form to report the full extent of your interest income to the IRS.

Depending on your situation, you’ll receive the form either electronically or by mail.

Step 2: Understand Form 1099-INT

This form details not just the total interest income you’ve received but may also show any tax withheld and other relevant financial details.

Familiarize yourself with the various boxes to understand exactly what each figure represents.

Step 3: Report Your Interest Income

Include your total interest income on your tax return. For most individuals, this means adding the amounts on Form 1099-INT to your Form 1040 or 1040-SR.

Ensure you’re reporting this income in the appropriate section to avoid any discrepancies.

Considerations for Married Couples

If you earn interest from a joint account, you can report that interest on your joint tax return. It’s typically split evenly unless you specify otherwise.

Step 4: Check State Reporting Rules

Some states also require you to report interest income on your state tax returns.

The requirements can vary significantly, so it’s worth checking your state’s specific rules or consulting a tax professional for guidance.

Step 5: Choose Your Filing Method

Whether you prefer e-filing or paper filing, make sure to accurately report the information from your Form 1099-INT.

Modern tax software can simplify this process, guiding you through each step and ensuring that you don’t overlook any small details.

Do You Always Have to Pay Taxes on 1099-INT Income?

In most cases, the interest you earn from standard accounts is taxable. But in some cases, the interest you earn through certain assets, like municipal bonds or CDs within a traditional IRA, isn’t taxable.

Keep In Mind

Some forms of interest might not be taxable at the federal level, but that doesn’t mean you’re off the hook entirely. Certain types of interest income may still be taxable at the state level.

Be sure to review your state’s tax rules or consult a tax professional to determine what applies to your situation.

What To Do If You Didn’t Receive a 1099-INT

If you earned less than $10 in interest throughout the tax year, you might not receive a 1099-INT Form. But keep in mind that you’ll still need to report the interest.

If you haven’t received your 1099-INT Form through the mail, take the following actions:

• Look into the documents section of your online account to see if your 1099-INT Form went there.
• If you aren’t able to locate them, reach out to your financial institution to get a copy of your 1099-INT.

Final Thoughts

Form 1099-INT ensures that all interest income is reported, keeping taxpayers and the IRS in sync. It’s a reminder that even the smallest earnings from interest can’t fly under the radar come tax time.

Understanding and accurately reporting this income is key to staying compliant and avoiding any unwelcome surprises from the IRS. Remember, when in doubt, seeking advice from a tax professional can provide clarity and peace of mind.

John Csiszar and Elizabeth Constantineau contributed to the reporting of this article.

Share This Article: