Form 1099-INT

Form 1099-INT is an IRS information return used to report interest income paid to a taxpayer during a calendar year. Financial institutions and other payers must issue it to any recipient who receives at least $10 of interest (and in some business contexts at least $600), and must also file a copy with the IRS. The form breaks down different types of interest and related items so taxpayers and the IRS can verify accurate reporting.

Key takeaways

• Reports interest income paid by banks, brokerages, mutual funds and similar payers.
• Generally issued when interest paid to a recipient is $10 or more (special $600 rule applies for business payments).
• Must be sent to recipients by January 31.
• Interest reported is typically taxable as ordinary income and must be included on the federal return.
• Not receiving a 1099-INT does not relieve a taxpayer of the obligation to report interest earned.

Who must file and who receives it

Payers required to file Form 1099-INT include banks, brokerages, mutual funds and other entities that pay interest. A payer must issue a 1099-INT to:
* Any person who received at least $10 in interest (boxes 1, 3, or 8), or
Any recipient who received $600 or more in interest in the course of your trade or business (see instructions for Box 1), or
Any recipient from whom the payer withheld federal backup withholding or paid/withheld foreign tax on interest.

Recipients include individuals and entities that received reportable interest. Some payees are generally exempt from receiving Form 1099-INT (for example, corporations, many tax-exempt organizations, IRAs and certain government agencies), though special rules and exceptions apply.

When to expect the form

Payers must send 1099-INT copies to recipients by January 31 for the prior tax year. If you don’t receive a form you expect, contact the issuer — many institutions provide downloadable tax forms via online portals.

How interest is taxed and reported

• Taxable interest is treated as ordinary income and included in adjusted gross income (AGI).
• Most taxpayers report interest on Schedule B (Part I) of Form 1040 when required — for example, when taxable interest exceeds certain thresholds or when instructed by the form. If you have over $1,500 of taxable interest and ordinary dividends, you generally must complete Schedule B.
• Some interest (e.g., certain municipal bond interest) is tax-exempt and reported separately.

Even if a payer does not issue a 1099-INT (e.g., amount under the $10 threshold), taxpayers must still report all interest income on their tax returns.

Key boxes on Form 1099-INT

Important boxes a recipient will commonly see:
* Box 1 — Interest income: Taxable interest paid (does not include amounts in Box 3).
Box 2 — Early withdrawal penalty: Amount of principal or interest forfeited due to early withdrawal (deductible by the recipient, does not reduce Box 1).
Box 3 — Interest on U.S. savings bonds and Treasury obligations: Interest from U.S. government obligations, reported separately from Box 1.
Box 4 — Federal income tax withheld: Backup withholding or other federal tax withheld from interest payments.
Box 8 — Tax-exempt interest: Interest exempt from federal income tax (typically state or local government obligations); not included in taxable interest but may be reported for certain tax calculations.

Form 1099-INT contains additional boxes (for foreign tax paid, market discounts, private activity bond interest, state information, etc.). Consult tax instructions or an advisor if other boxes are populated.

Special considerations

• Backup withholding: If a recipient fails to provide a correct TIN, the payer may be required to withhold federal income tax and report it in Box 4.
• Foreign payers and non-U.S. instruments: Different rules apply for interest paid by non-U.S. payers or on non-U.S. instruments; such payments may be exempt from Form 1099-INT reporting.
• Timing of when interest is “paid”: Interest generally counts as paid when it is credited to an account and available without substantial restrictions. Special rules apply for savings bonds and other demand obligations.
• Records and multiple accounts: A payer may include an account number on the form to distinguish multiple accounts for the same recipient.

What to do if you receive a 1099-INT

• Verify all personal and account information (name, TIN, amounts).
• Reconcile reported interest with your own records (statements, year-to-date interest).
• Report taxable amounts on your tax return (Schedule B and Form 1040 as required).
• If incorrect or missing, contact the issuer promptly for a corrected 1099-INT.

Bottom line

Form 1099-INT documents interest income and helps the IRS and taxpayers ensure accurate reporting. Payers must issue the form when thresholds or withholding rules apply, and recipients must include reportable interest on their federal tax returns regardless of whether they receive a form. When in doubt about specific boxes or special situations, consult the IRS instructions or a tax professional.