1099-INT Form

The 1099-INT form is a version of the Internal Revenue Service (IRS) 1099 form that’s used to report interest income. Banks and other financial institutions use this form to report the interest they’ve paid to investors over the course of the tax year. It’s important to note that a separate 1099-INT form is provided for each account that has earned more than $10 in interest during 2024.

Why is the 1099-INT Form Important?

The 1099-INT form is crucial for two primary reasons:

1. For the IRS: It helps the IRS track the interest income you’ve received throughout the year, ensuring that you’re paying the appropriate amount of taxes on that income. The IRS matches the information provided on the 1099-INT forms with the information you report on your tax return to ensure accuracy.
2. For the taxpayer: It provides you with a clear record of the interest income you’ve earned, which you’ll need to report when you file your taxes. If you don’t include this income on your tax return, you could face penalties from the IRS.

Understanding the Boxes on the 1099-INT Form

The 1099-INT form for 2024 contains several boxes, each of which reports a different type of information related to your interest income.

• Box 1 reports your total taxable interest income for the year, not including any federal tax withheld.
• Box 2 reports interest penalties you were charged during 2024.
• Box 3 reports interest earned on U.S. Savings Bonds, Treasury obligations, and other government securities. This may be exempt from state or local taxes.
• Box 4 reports any federal tax withheld from your interest income.
• Box 5 reports investment expenses. This box is generally not applicable for most taxpayers as of tax year 2023.
• Box 6 reports any foreign tax paid.
• Box 7 reports foreign country or U.S. possession where tax was withheld at its source.
• Box 8 reports tax-exempt interest. This is interest from a U.S. obligation that is tax-exempt at the federal level.
• Box 9 reports specified private activity bond interest dividends. This interest is taxable and must be reported on your tax return.
• Box 10 reports the market discount on a bond, which is generally not applicable for most taxpayers.
• Box 11 is for bond premium on Treasury obligations.
• Box 12 is for bond premium on tax-exempt bond.
• Box 13 reports the amount of accrued market discount.
• Box 14 reports the state.
• Box 15 reports the state identification number.
• Box 16 reports the state tax withheld.

Form 1099-INT (Interest Income) is an information return that reports interest payments received from financial institutions that count as income. Banks are required to file this tax form to report how much was paid in reportable during the tax year. The 1099-INT also reports any tax withheld along with the backup withholding if it was subjected to the taxpayer that’s the 1099-INT is furnished. 

The same as other information returns that report income, or any other 1099, the taxpayer that received it must attach the form to their federal income tax returns. If not attached, the tax return won’t have everything that’s needed and the taxpayer will have to amend the return at some point. 

How Form 1099-INT is filed?

If you’ve made interest payments that exceed $10 during the tax year, you must file Form 1099-INT to report this to the taxpayer. You’ll also file the same copy for Internal Revenue Service Center and the state tax department. There won’t be any additional work for these copies as all three forms will be the same.

You can start filling out the 1099-INT online and file it and print out a paper copy. However, this isn’t e-filing so you will need to mail 1099 with 1096 Form to the IRS. You will also need to mail it to the state tax department, but how you give it to the recipient doesn’t matter.

Breakdown of the 1099-INT Form Boxes

Reporting Information from the 1099-INT Form on Your Tax Return