What Is IRS Form 1099-INT? Who Gets It and Why

What Is Form 1099-INT? Who Gets It and Why

If you earned interest from a bank, credit union, or other financial institution, chances are you’ll receive IRS Form 1099-INT during tax season. This form is more than just paperwork — it directly impacts your tax return and your bottom line.

At TAXtical LLC, we help taxpayers understand and properly report interest income so they stay compliant and avoid surprises at tax time.

What Is IRS Form 1099-INT?

Form 1099-INT, officially titled "Interest Income," is an IRS tax document used by financial institutions to report interest payments of $10 or more paid to individuals or businesses during the tax year.

The form reports:

• Interest income earned

• Federal income tax withheld (if applicable)

• Foreign tax paid (if any)

• Early withdrawal penalties

• Other interest-related information

If you earned even $10 or more in interest, you're likely to receive this form — and the IRS will too.

Who Receives Form 1099-INT?

You will receive Form 1099-INT if you:

• Earned interest income from a bank account, savings account, CD, or U.S. Treasury bonds

• Held an account that earned $10 or more in interest during the calendar year

• Had backup withholding taken from your interest earnings

• Received taxable interest as an individual, partnership, or corporation

Examples of senders:

• Banks and credit unions

• Online savings platforms (like Ally, Capital One, etc.)

• Brokerage firms

• Government agencies (for Treasury securities)

Key Boxes on Form 1099-INT (What They Mean)

Be sure to report both taxable and tax-exempt interest — even tax-exempt income must be disclosed.

Why Did I Get a 1099-INT?

Here are the most common reasons why you might receive a Form 1099-INT:

• You earned interest from a high-yield savings account

• You cashed out a Certificate of Deposit (CD)

• You received interest on U.S. Treasury bills, bonds, or notes

• You invested in foreign bonds and had foreign tax withheld

• You received over $10 in total interest across your accounts

Is the Interest on 1099-INT Taxable?

Yes — most interest reported on 1099-INT is taxable and must be included on your federal tax return.

However:

• Municipal bond interest (Box 8) is usually tax-exempt

• U.S. Treasury bond interest is exempt from state taxes

• Foreign interest income may qualify for foreign tax credit

TAXtical can help you determine how much of your interest income is taxable and how to properly report it.

Where Do I Report Form 1099-INT on My Tax Return?

You’ll report your 1099-INT income on:

• Form 1040, Schedule B (if you have more than $1,500 in interest)

• Line 2b of your Form 1040 (for total interest income)

• Foreign tax paid (Box 6) may be claimed as a credit on Form 1116

Pro Tip: Always double-check the amounts against your own records — especially if you have multiple accounts.

❌ What Happens If You Don’t Report 1099-INT?

Failing to report 1099-INT income can result in:

• IRS matching notices (they already have a copy)

• Accuracy penalties for underreporting income

• Interest and additional taxes owed

To avoid this, TAXtical recommends gathering all tax documents before filing — including every 1099 form.

When Will I Receive Form 1099-INT?

Financial institutions are required to send 1099-INT forms by January 31st of each year.

• Paper forms are usually mailed

• Digital versions may be available via online banking portals

If you didn’t receive a form but know you earned interest, you’re still required to report it.

Expert Tips for Managing 1099-INT Income

• Track your interest earnings year-round

• Use tax software or a tax pro to categorize taxable vs. non-taxable interest

• Don’t ignore small amounts — even $10 can trigger a mismatch notice

• Watch for duplicate interest reports if you switched banks mid-year

✅ Why Choose TAXtical to Handle Your 1099-INT and Taxes?

At TAXtical, we ensure your tax filings are accurate, complete, and IRS-compliant. We help:

📌 Review and reconcile all 1099 forms
📌 Report interest income correctly on your return
📌 Maximize deductions and credits tied to investment income
📌 Avoid IRS letters and penalties
📌 Provide expert tax guidance for individuals and small businesses

With offices in Baton Rouge, Utah, South Carolina, and Michigan, we serve clients nationwide with reliable and affordable tax solutions.

📞 Need Help With a 1099-INT Form? Contact TAXtical Today!

Interest income may seem simple, but IRS reporting rules aren’t always straightforward. Let the professionals at TAXtical LLC help you file with confidence.

👉 Contact us today for a free consultation and stay stress-free this tax season!