Everything you need to know about Form 1099-INT

What is Form 1099-INT?

Form 1099-INT is the information return banks, credit unions, brokers, mutual funds, and other payers issue to report interest income paid to a recipient during the tax year. It tells the recipient (and the IRS) how much interest was earned and how much tax, if any, was withheld. A 1099-INT is generally issued for $10 or more of interest paid in a year — or $600 or more if the interest was paid in the course of the payer's trade or business outside the financial-institution context.

Who issues Form 1099-INT and who gets one?

Payers — banks, credit unions, brokerage firms, mutual fund companies, the U.S. Treasury (for savings bonds and Treasury obligations), and any other business paying interest in the course of trade or business — issue Form 1099-INT. Recipients are individuals, corporations, partnerships, trusts, and estates that earned at least $10 of interest during the year. Multiple 1099-INTs from different payers all combine into the recipient's total interest income.

What's reported in each box?

Box 1: regular interest income. Box 2: early withdrawal penalty (a deduction on the recipient's return). Box 3: interest on U.S. savings bonds and Treasury obligations (taxable at federal level, generally exempt from state and local tax). Box 4: federal income tax withheld (backup withholding). Box 8: tax-exempt interest. Box 9: specified private activity bond interest (a potential AMT adjustment). Box 13: bond premium on tax-exempt bonds. State tax info appears in Boxes 15–17.

When and how to file?

Payers must furnish Copy B to the recipient by January 31. Copy A is filed with the IRS by February 28 if filing on paper, or March 31 if filing electronically. Filers issuing 10 or more information returns of any type must e-file. Recipients use the 1099-INT amounts to complete their Form 1040: total interest goes on the interest line, with Schedule B required if total interest exceeds $1,500. Tax-exempt interest is reported on a separate line and may affect Social Security taxation.