As with other types of income, if you earned interest this year—from a bank or bond issuer, for example—the IRS wants to know about it. Form 1099-INT is how it finds out. You can expect to receive one of these forms if you earned at least $10 in interest throughout the previous tax year from a financial institution or other interest payer. Here’s what a 1099-INT is, what information it contains, and what to do with it if you get one.
What is a 1099-INT?
Form 1099-INT offers a breakdown of the total interest you earned during the previous tax year and where that money came from. Like other 1099 forms, 1099-INT reports income you receive from an entity that isn’t your employer.
Who receives a 1099-INT?
You will receive a 1099-INT form if you earn at least $10 of interest from a single financial institution during the tax year. The form comes from the entity that paid you interest; the IRS will receive a copy of the form too. If you earned interest from multiple financial institutions, you should receive a 1099-INT from each of them. For example, if you have a checking account at a bank, a savings account at a credit union, and a brokered certificate of deposit (CD) at a brokerage firm, you could receive 3 separate 1099-INT forms. You might also receive 1099-INT forms from a life insurance carrier if you’re a beneficiary.
What’s on a 1099-INT?
If you’re trying to figure out how to read your 1099-INT, here’s what you need to know: On the left half of Form 1099-INT, there’s basic information about the interest payer and the recipient (that’s you). On the right side of the form, there’s a total of 17 boxes that contain information about the interest you earned during the year. This includes the following:
- 1 Interest income shows the amount of taxable interest you earned from a financial institution or corporate bond.
- 2 Early withdrawal penalty would include any amount you’ve been charged for withdrawing money before an agreed-upon term ended. This typically applies to withdrawals from CDs before they matured.
- 3 Interest on US Savings Bonds and Treasury obligations would show any interest from US savings bonds and Treasury bills, bonds, and notes. Some of this interest may be exempt from state and local taxes but still might be subject to federal taxes.
- 4 Federal taxes withheld would show any amount the financial institution that paid you interest withheld in federal taxes on your behalf. You don’t need to pay that amount again.
- 8 Tax-exempt interest would show any portion of interest you earned that isn’t subject to taxes. This typically applies to federal income taxes on municipal bonds. You still may be responsible for state and local taxes on those bonds.
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When is a 1099-INT sent?
1099-INT forms must be sent out by January 31 of the following year. If you're expecting a 1099-INT for the 2024 tax year, you should receive it soon after January 31, 2025. In some cases, you may receive a 1099-INT earlier. For instance, if you redeem a US savings bond, the financial institution that pays the interest may send you Form 1099-INT right after the redemption.
What should you do if you don’t get a 1099-INT?
If you don't receive a 1099-INT and you think you should, contact the financial institution you expected to issue you one. If you still haven't received the form by the end of February, you can contact the IRS for assistance. If you never receive your 1099-INT, and Tax Day is looming, you could check your statements from the entity that paid you interest. Total that up and report it on your tax return when you file. If you receive the form after filing your income taxes—and you spot a discrepancy—you may need to file an amended return, aka Form 1040-X.
What do you do if there’s an error on your 1099-INT?
If there’s an error on your 1099-INT, reach out to the financial institution that issued the form. Tell them there’s a mistake and request they send you and the IRS a corrected form. You can also ask the payer to give you a letter explaining what went wrong. That way, you'll have evidence if the IRS asks for verification.
If you can't reach the payer, report the accurate numbers on your tax return and attach an explanation with the incorrect 1099-INT. It's possible you could be audited, and the IRS might want more information to verify your return. They may request your account statements and other proof showing the true amount you received from the payer. Consult a tax professional regarding your personal situation.
1099-INT instructions
Don’t worry about how to file 1099-INT; you don’t need to submit Form 1099-INT to the IRS. But you do need to accurately report the information from your 1099-INT forms on your tax return. Follow these instructions to get it right.
Step 1: Collect all your 1099-INT forms
Gather all your 1099-INT forms for the tax year. Confirm that the reported payments and all other details are correct.
Step 2: Collect all your 1099-DIV forms
Repeat Step 1 with any 1099-DIV forms you’ve received. Add up what you earned in taxable interest (from your 1099-INT forms) and dividends (from your 1099-DIV forms).
Step 3: Complete a Schedule B if necessary
Most taxpayers need to submit a Schedule B to the IRS only if their taxable interest and dividends add up to more than $1,500. But if you’re in that group and are preparing your taxes yourself, list out every source of interest and dividends you received during the tax year (check your 1099-INTs and 1099-DIVs) and how much you earned from each one on a Schedule B. Then add these numbers together. If you’re working with a tax professional, you could hand over all your 1099 forms for them to sort out.
Step 4: Report information from 1099-INT on your tax return and file it
Even if you don’t have to fill out a Schedule B, you need to prepare and file your tax return (or have a pro or software do it for you). Certain information from your 1099-INT needs to be recorded, including taxable interest from box 1, penalties from box 2, federal taxes withheld from box 4, and tax-exempt interest from box 8.
Step 5: Keep your 1099-INT forms for your records
Again, you don’t need to file Form 1099-INT with your tax return, though you do need to include some information from that form. Still, the IRS recommends hanging onto your 1099-INT for at least 3 years.