1099-INT (Interest Income)
What Is 1099-INT?
Form 1099-INT is a tax document issued by banks, credit unions, and financial institutions to report interest income earned during the tax year.
It is commonly used to report interest earned on savings accounts, certificates of deposit (CDs), and certain investments.
Why It Matters
Interest income is generally taxable and must be reported when filing a tax return. Form 1099-INT helps both taxpayers and the IRS track how much interest income was earned.
Even relatively small amounts of interest may need to be reported as taxable income.
How 1099-INT Works
Financial institutions issue Form 1099-INT when interest earned meets certain reporting thresholds.
The form typically includes:
- total interest income earned
- federal tax withheld (if applicable)
- payer information
Recipients use the information to report interest income on their tax return.
Example
If you earn $200 in interest from a savings account during the year, the bank may issue a 1099-INT showing that amount. The interest must be reported as income on your tax return.
1099-INT vs 1099-DIV
- 1099-INT reports interest earned from deposits or loans.
- 1099-DIV reports dividend income earned from investments.
FAQs About 1099-INT
Do I need to report interest income if I do not receive a 1099-INT?
Yes. All taxable interest income must be reported.
Which accounts generate 1099-INT forms?
Savings accounts, CDs, and certain bonds often generate interest income.
Is all interest taxable?
Most interest is taxable, though some municipal bond interest may be tax-exempt.
Related Terms
