Form 1099-INT: Interest Income

Form 1099-INT is generally used to report certain interest income paid during the year and provide information that may be relevant to a taxpayer's federal tax return.

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Introduction

Form 1099-INT, Interest Income, is generally used by banks, financial institutions, and other applicable payers to report certain interest income paid to taxpayers during the year. The form provides information that may be used when preparing a federal income tax return.

A taxpayer who receives Form 1099-INT should review the information and keep the statement with their tax records. The tax treatment of interest income can vary depending on the type of interest, the source of the payment, and the taxpayer’s individual circumstances.

What Is Form 1099-INT?

Form 1099-INT is an information statement used to report certain interest income. It may include taxable interest, tax-exempt interest, federal income tax withheld, and other applicable amounts.

Form 1099-INT is generally prepared by the bank, financial institution, investment company, or other applicable payer rather than by the taxpayer. The taxpayer may use the information when determining how interest income should be reported on a federal income tax return.

Who Uses Form 1099-INT?

Form 1099-INT may be used by banks, credit unions, financial institutions, investment companies, and other applicable payers that make reportable interest payments.

Individuals, businesses, trusts, and other taxpayers who receive qualifying interest income may receive Form 1099-INT. Not every interest payment or financial account will result in a Form 1099-INT.

What Information Is Needed?

The information on Form 1099-INT generally includes the taxpayer’s identifying information, the payer’s information, interest amounts, and other applicable investment or tax information.

Taxpayers should compare Form 1099-INT with bank statements, investment statements, account records, and other payment records. Keeping these records can help verify the amounts reported and support information used when preparing a federal income tax return.

How to Fill Out/Complete Form 1099-INT

Form 1099-INT is generally completed by the bank, financial institution, or other applicable payer rather than by the taxpayer. The statement is prepared using the payer’s records of interest payments during the applicable reporting period.

Taxpayers who receive Form 1099-INT generally use the information provided when preparing their federal income tax return. Each applicable category should be reviewed because different types of interest may receive different tax treatment.

Section 1

Enter the applicable payer and recipient identifying information requested on Form 1099-INT. This generally identifies the financial institution or other payer and the taxpayer receiving the interest.

Review names, addresses, and taxpayer identification information carefully. Accurate identifying information can help ensure that the statement is associated with the correct taxpayer and financial account.

Section 2

Enter the applicable amount of interest income. This generally includes taxable interest reported by the payer for the applicable reporting period.

Review the reported amount against bank statements, investment statements, and other account records. Taxpayers should retain supporting documentation with their tax records.

Section 3

Enter applicable interest that may receive different tax treatment, such as tax-exempt interest or other amounts specifically identified on the form.

Review the type of interest reported rather than treating all interest as the same. The tax treatment may depend on the source and classification of the interest income.

Section 4

Enter any applicable federal income tax withheld from interest payments. This information may be relevant when determining the amount of federal income tax already paid on behalf of the taxpayer.

Review the withholding amount against the taxpayer’s account and payment records. Any reported federal withholding should generally be considered when preparing the applicable federal income tax return.

Section 5

Complete any additional information requested on Form 1099-INT that applies to the taxpayer or account. This may include foreign-related amounts, bond-related information, or other applicable interest information.

Not every taxpayer will have amounts in every category. Review the applicable fields and supporting financial records before using the information on a tax return.

Final Review

Review Form 1099-INT after all applicable information has been entered. Check the taxpayer information, payer information, interest amounts, withholding, and other reported details.

A final review can help identify simple reporting errors before the information is used to prepare a tax return. Taxpayers should retain Form 1099-INT and supporting financial records with their tax documents.

Common Mistakes

Common mistakes involving Form 1099-INT may include reporting an incorrect interest amount, overlooking tax-exempt interest, entering incorrect withholding information, or failing to include applicable interest income when preparing a federal tax return.

Another common mistake is assuming that every amount shown on Form 1099-INT receives the same tax treatment. Different types of interest and investment-related amounts may be subject to different federal tax rules.

Related IRS Forms

Form 1099-INT may be associated with Form 1040 and other federal tax forms and schedules used to report interest income, investment income, and related tax items.

Other forms or schedules may apply depending on the type and amount of interest received. The specific forms required will vary based on the taxpayer’s investments, financial accounts, and individual circumstances.

Where to File or Submit

Form 1099-INT is generally prepared by the bank, financial institution, investment company, or other applicable payer and furnished to the taxpayer when required. The taxpayer generally does not submit Form 1099-INT as a separate federal tax return.

When applicable, the taxpayer uses the information from Form 1099-INT when preparing their federal income tax return. The taxpayer should retain the statement with their financial and tax records.

Current IRS Form & Instructions

Tax forms and instructions may change over time. Payers and taxpayers should use the version of Form 1099-INT that applies to the applicable reporting period and tax year.

The information on this page is intentionally general so it can remain useful across multiple tax years. Before preparing or using Form 1099-INT, users should review the applicable version of the form and its instructions because reporting requirements, interest classifications, withholding rules, and other tax procedures may change.

Important Information / Disclaimer

This page is provided for general informational and educational purposes and offers a basic overview of Form 1099-INT. It is not intended to provide individualized tax, legal, accounting, investment, banking, or financial advice and should not be considered a substitute for professional guidance.

Federal tax laws, forms, information reporting requirements, interest income rules, withholding rules, and filing procedures may change over time. Information that applies to one taxpayer, financial account, payer, investment, or tax year may not apply to another, so users should consider their individual circumstances and seek assistance from a qualified tax professional when appropriate.