What is Form 1099-INT?
Form 1099-INT, Interest Income, is a tax form by the Internal Revenue Service (IRS) that taxpayers use to report interest income.
Payers of interest issue Form 1099-INT to investors by the end of the year. Payers include brokerage firms, banks, and financial institutions. When they pay interest income over $10 to an individual during the year, they need to file Form 1099-INT. They need to file a Form 1099-INT for each recipient of interest income.
According to the IRS, if you are the payer, file Form 1099-INT for each person:
- To whom you paid amounts reportable in boxes 1, 3, and 8 of at least $10 (or at least $600 of interest paid in the course of your trade or business described in the instructions for Box 1. Interest Income, later);
- For whom you withheld and paid any foreign tax on interest; or
- From whom you withheld (and did not refund) any federal income tax under the backup withholding rules regardless of the amount of the payment.
If you are an individual who earned more than $10 in interest from a bank, brokerage firm, mutual fund company, or other financial institutions, you will receive Form 1099-INT. Just like any type of Form 1099, Form 1099-INT will serve as a record that a person or entity, that is not your employer, paid you interest income. It will help you calculate the interest income you received from a person or entity.
The payer needs to send Form 1099-INT to recipients no later than January 31 and file with the IRS no later than the last day of February each year.
Form 1099-INT contains several copies that the payer needs to submit or give to the appropriate recipients.
- Copy A — The payer submits Copy A of Form 1099-INT to the Internal Service Revenue.
- Copy B — The payer gives Copy B of Form 1099-INT to the recipient for personal records.
- Copy C — The payer keeps Copy C of Form 1099-INT.
- Copy 1 — The payer submits Copy 1 of Form 1099-INT to the State Tax Department.
- Copy 2 — The payer gives Copy 2 of Form 1099-INT to the recipient for the recipient to file with his or her state income tax return, when required.
How to fill out Form 1099-INT?
All copies of Form 1099-INT are similar and only differ in terms of where they individually go. Make sure that all the items are accurately answered to avoid any issues.
PAYER’s name, street address, city or town, state or province, country, ZIP or foreign postal code, and telephone number
This item shows the payer’s information.
Payer’s RTN (optional)
This item shows the payer’s routing number, if necessary.
This item shows the payer’s Taxpayer Identification Number (TIN).
Provide your Taxpayer Identification Number (TIN).
Provide your name.
Street address (including apt. no.)
Provide the street address, including the number of your current residence.
City or town, state or province, country, and ZIP or foreign postal code
Provide the city or town, state or province, country, and ZIP or foreign postal code of your current residence.
FATCA filing requirement
According to the IRS, if this item is checked, the payer is reporting on Form 1099 to satisfy its chapter four account reporting requirement. You also may have a filing requirement.
The payer may assign or provide an account or other unique number to you to distinguish your account.
Box 1 — Interest income
This item must show the taxable interest paid to you during the calendar year by the payer.
Instructions from Form 1099-INT: Shows taxable interest paid to you during the calendar year by the payer. This does not include interest shown in box 3. May also show the total amount of the credits from clean renewable energy bonds, new clean renewable energy bonds, qualified energy conservation bonds, qualified zone academy bonds, qualified school construction bonds, and build America bonds that must be included in your interest income. These amounts were treated as paid to you during 2021 on the credit allowance dates (March 15, June 15, September 15, and December 15). For more information, see Form 8912. See the instructions above for a taxable covered security acquired at a premium.
Box 2 — Early withdrawal penalty
This item shows interest or principal forfeited due to early withdrawal of time savings.
Box 3 — Interest on U.S. Savings Bonds and Treas. obligations
This item shows interest on U.S. Savings Bonds, Treasury bills, Treasury bonds, and Treasury roots.
Box 4 — Federal income tax withheld
This item shows backup withholding.
Box 5 — Investment expenses
This amount here is your share of the investment expenses of a single-class REMIC.
Box 6 — Foreign tax paid
This item shows foreign tax paid. You may be able to claim this tax as a deduction or a credit on your Form 1040 or 1040-SR.
Box 7 — Foreign country or U.S. possession
This item shows the country or U.S. possession to which the foreign tax was paid.
Box 8 — Tax-exempt interest
This item shows tax-exempt interest paid to you during the calendar year by the payer.
Box 9 — Specified private activity bond interest
This item shows the tax-exempt interest subject to the alternative minimum tax.
Box 10 — Market discount
This item shows the market discount. Market discount on tax-exempt security is includible in taxable income as interest income.
Box 11 — Bond premium
This item shows the amount of bond premium.
Box 12 — Bond premium on Treasury obligations
This item shows the amount of bond premium on treasury obligations.
Box 13 — Bond premium on tax-exempt bond
This item shows the amount of bond premium on a tax-exempt bond.
Box 14 — Tax-exempt and tax credit bond CUSIP no.
This item shows CUSIP number or numbers for tax-exempt bond or bonds on which taxable interest was paid, or tax credit bond or bonds on which taxable interest was paid or tax credit was allowed, to you during the calendar year.
Box 15 — State
This item shows the state where your state taxes go.
Box 16 — State identification no.
This item shows the state identification number.
Box 17 — State tax withheld
This item shows the amount of state tax withheld.