What Form 1099-INT is for
Form 1099-INT reports interest income. A bank, credit union, or other payer fills it out for each person they paid interest to during the calendar year, then sends one copy to the IRS and another copy to that person. If one showed up in your mail, it is a record of interest paid to you and any tax withheld from it.
Payers file it for each person paid at least $10 reportable in boxes 1, 3, or 8, or at least $600 of interest paid in the course of a trade or business. It also covers anyone you withheld and paid foreign tax for, and anyone you backup withheld federal income tax from and did not refund, whatever the amount.
Who has to file Form 1099-INT?
The payer files this form, not the person who earned the interest. You file one for each person you paid at least $10 reportable in boxes 1, 3, or 8, for each person you withheld and paid foreign tax on interest for, and for anyone you backup withheld federal income tax from and did not refund, no matter the size of the payment. Report only interest paid in the course of your trade or business. That includes federal, state, and local government agencies, activities deemed nonprofit, and interest you handled as a nominee or middleman.
- Box 1 also picks up interest of $600 or more paid in the course of your trade or business, such as interest received with damages or interest on a state or federal income tax refund.
- You are not required to file for exempt recipients such as a corporation, a tax-exempt organization, an IRA, an Archer MSA, a Medicare Advantage MSA, an HSA, a U.S. agency, a state, the District of Columbia, or a U.S. territory.
- Taxable OID belongs in box 1 or 8 of Form 1099-OID, not here. Tax-exempt OID belongs in box 11 of Form 1099-OID.
- Exempt-interest dividends from a mutual fund or other RIC go on Form 1099-DIV.
- Do not report tax-deferred interest, such as interest earned but not distributed from an IRA.
Where does each copy go?
Copy A is the red one for the IRS, and you file it with Form 1096 with the Internal Revenue Service Center. Do not print the red Copy A from a downloaded PDF and mail that in, because a penalty may be imposed for filing information returns that cannot be scanned. Copy 1 goes to a state tax department that wants a paper copy. Copy B goes to the recipient to keep for their records. Copy 2 goes to the recipient for filing a state income tax return. Copies 1, B, and 2 are fillable online in PDF format.
- With 10 or more information returns to file, you may be required to e-file.
- With fewer than 10, the IRS still encourages e-filing. To file on paper, order the official returns with a scannable Copy A.
How do you fill out the boxes?
Start with the payer name, address, and telephone number, both TINs, the recipient name and address, and the calendar year. An account number is required when you file more than one Form 1099-INT for the same recipient, and when you check the FATCA filing requirement box. The payer routing transit number is optional and is there for payers who take part in the direct deposit of refunds program. Then fill the money boxes. Most of them start at $10, and foreign tax in box 6 is reported in U.S. dollars.
- Check the FATCA filing requirement box if you are a U.S. payer reporting for chapter 4 purposes, or a foreign financial institution reporting payments to a U.S. account under an election.
- Enter an X in 2nd TIN not. if the IRS notified you twice within 3 calendar years that the payee gave an incorrect TIN.
- Bond premium can go in two ways. If a taxpayer gets $20 of taxable interest and $2 of premium amortization is allocable to it, report $18 in box 1 and $0 in box 11, or report $20 in box 1 and $2 in box 11.
- You may truncate the recipient TIN on payee statements, but not on anything you file with the IRS. A payer TIN is never truncated.
What dates does the form text give?
The form covers a calendar year, and you enter that year at the top. This text does not set a filing deadline. It points you to the current General Instructions for Certain Information Returns for when and where to file. It does name a few other dates. Tax credits from tax credit bonds count as paid on the credit allowance dates, which are March 15, June 15, September 15, December 15, and the last day the bond is outstanding. A written tax information statement for a trust interest holder in a WHFIT must be furnished by March 15, and statements to REMIC, FASIT, and CDO holders must also be furnished by March 15.
You received a Form 1099-INT. What does it mean?
Copy B is yours to keep. It carries a warning that the same information went to the IRS, and that a negligence penalty or other sanction may be imposed on you if the income is taxable, you are required to file a return, and the IRS finds it was not reported. Box 1 is the taxable interest paid to you. Box 3 interest is exempt from state and local income taxes and may or may not be taxable otherwise. Box 4 is backup withholding, which you include on your return as tax withheld. The form may show only the last four digits of your TIN, but the issuer reported the full number to the IRS.
What if some of the interest belongs to someone else?
The instructions call that being a nominee recipient. If your Form 1099-INT includes amounts belonging to another person, complete a Form 1099-INT for each of the other owners showing the income allocable to each. File Copy A with the IRS and furnish Copy B to each owner. List yourself as the payer and the other owner as the recipient. File the forms with Form 1096 with the Internal Revenue Service Center for your area, and list yourself as the filer on Form 1096. A spouse does not have to file a nominee return for amounts owned by the other spouse.
Form 1099-INT line by line
| Line | What goes there |
|---|---|
| 1 | Taxable interest paid to you during the calendar year, not counting box 3. May also include credits from certain tax credit bonds. |
| 2 | Interest or principal forfeited because of an early withdrawal of time deposits, such as cashing out a CD early. |
| 3 | Interest on U.S. Savings Bonds, Treasury bills, Treasury notes, and Treasury bonds. Not included in box 1. |
| 4 | Backup withholding. A payer generally withholds if you did not furnish your TIN or gave an incorrect one. |
| 5 | Your share of investment expenses of a single-class REMIC. Included in box 1 and not deductible. |
| 6 | Foreign tax paid on the interest, reported in U.S. dollars. |
| 8 | Tax-exempt interest of $10 or more, such as interest on obligations issued by a state, a U.S. territory, or their political subdivisions. |
| 9 | Specified private activity bond interest of $10 or more. Included in the box 8 total and subject to the alternative minimum tax. |
| 10 | Market discount of $10 or more accrued during the year on a covered security, when the recipient told the payer of a section 1278(b) election. |
| 11 | Bond premium amortization allocable to interest on a taxable covered security other than a U.S. Treasury obligation. |
| 12 | Bond premium amortization on a U.S. Treasury obligation that is a covered security. |
| 13 | Bond premium amortization on a tax-exempt covered security. |
| 14 | CUSIP number of the tax-exempt or tax credit bond. Enter various for multiple bonds or accounts. Blank means no CUSIP number was issued. |
| 15 to 17 | State abbreviation, the payer's state identification number, and state tax withheld, for up to two states. Not needed for the IRS. |
Source: IRS, Form 1099-INT (Rev. Jan 2024) and Instructions for Forms 1099-INT and 1099-OID, Interest Income and Original Issue Discount. This page explains the form in plain English. It is not tax advice.