What is Form 1099-INT?
Form 1099-INT, Interest Income Tax Form, is a type of Internal Revenue Service (IRS) form that is used to report and record a breakdown of all types of interest income and other related expenses at the end of the year.
Who may file Form 1099-INT?
- The person or entity that gives the payments of interest income
- An organization or institution that paid more than $10 of interest
- The entity that withheld and paid foreign tax on interest
- Payers who withheld federal income tax under the backup withholding rules
How to fill out Form 1099-INT?
Form 1099 requires your personal information.
Enter your full legal name.
Enter your full address, including city or town, state or province, country, and ZIP or postal code.
Enter your active telephone number.
Enter your Tax Identification Number (TIN).
Enter the recipient’s TIN.
Enter the full legal name of the recipient.
Recipient’s street address
Enter the street address and apartment number of the recipient.
FATCA filing requirement box
Check the Foreign Account Tax Compliance Act (FATCA) box if you are a U.S. citizen reporting
on Form 1099-INT to comply with the requirement to report to a U.S. account.
You can also check the box if you are a Foreign Financial Institution (FFI) reporting payments to
a U.S. account pursuant to an election.
Recipient’s account number
The recipient’s account number should be filled out if you check the FATCA filing requirement
box, and if your recipient has multiple accounts.
2nd TIN not.
Enter “X” if the IRS informed you twice within three tax years that the payee provided
an incorrect TIN.
Box 1 — Interest Income
Enter the taxable interest you paid during the tax year.
It may also show the total amount of other things included in the recipient’s interest income such as 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 American bonds.
Box 2 — Early Withdrawal Penalty
Enter the amount of interest or principal forfeited due to early withdrawal of time savings.
Box 3 — Interest on U.S. Savings Bonds and Treas. obligations
Enter the interests that are exempted from state and local income taxes such as the interest in U.S. Savings Bonds, Treasury bills, Treasury bonds, and Treasury notes. This may or may not all be taxable.
Box 4 — Federal Income Tax Withheld
Enter the backup withholding. You should backup withhold if the recipient did not furnish his or her TIN or if the recipient did not enter the correct TIN.
Box 5 — Investment Expenses
Enter the amount of the recipient’s share of a single-class Real Estate Mortgage Investment Conduit (REMIC) investment expenses which is not deductible.
REMIC refers to pass-through tax investments in mortgage-backed securities that hold real estate property.
Box 6 — Foreign Tax Paid
Enter the recipient’s foreign tax paid which he or she may claim as a deduction or credit on their Form 1040, U.S. Individual Income Tax Return, or 1040-SR, U.S. Tax Return for Seniors.
Box 7 — Foreign Country or U.S. Possession
Enter the origin country or U.S. possession where the foreign tax was paid.
Box 8 —Tax-exempt Interest
Enter the amount of tax-exempt interest you paid during the year should be put here. This may or may not be subject to backup withholding.
Box 9 — Specified Private Activity Bond Interest
Enter the tax-exempt interest subject to the alternative minimum tax. This amount is also included in box 8.
Box 10 — Market Discount
For taxable covered security, enter the market discount accumulated overtime on the debt instrument during the year the recipient held it.
Unless the taxpayer informed you that he or she did not make a section 1276(b) election, use the constant yield method to determine the market discount accumulated overtime on the debt instrument.
Box 11 — Bond Premium
For taxable covered security other than a U.S. Treasury obligation, the amount of premium amortization from the interest payments should be encoded here, unless the holder informed you that he or she did not want to amortize bond premium.
Leave this box blank if you entered the net amount of interest in box 1.
Box 12 — Bond Premium on Treasury Obligations
For a U.S. Treasury obligation, enter the amount of premium amortization from the interest payments unless the holder informed you that he or she did not want to amortize bond premium. Leave this box blank if you entered the net amount of interest in box 3.
Box 13 — Bond Premium on Tax-exempt Bond
For tax-exempt covered security, encode the amount of premium amortization from the interest payments. Leave this box blank if you entered the net amount of interest in box 8 or 9.
Box 14 — Tax-exempt and Tax Credit Bond CUSIP No.
Enter the Committee on Uniform Securities Identification Procedures (CUSIP) number for a tax-exempt bond where tax-exempt interest was paid, or tax credit bond where taxable interest was paid or tax credit was allowed. A CUSIP number identifies the financial security and instruments of U.S. citizens.
Leave it blank if there is no CUSIP number issued for the said bonds.
Boxes 15 — 17
State tax withheld reporting boxes. You can use these boxes to report payments up to two states. In box 15, enter the name of the state; in box 16, enter your state’s identification number; and, in box 17, enter the amount of state income tax you withheld.
If you have other concerns about reporting on Form 1099-INT, call the information reporting customer service site toll-free at 866-455-7438. If you have a hearing or speech disability with access to TTY/TDD equipment, you can call 304-579-4827 (not toll-free).
How to file Form 1099-INT?
File Copy A of this form with the IRS. If you want to file electronically, download suitable software and generate a file according to the specifications in Pub. 1220. Please note that the IRS does not provide a fillable form option for Copy A.
Complete this form by using the 2020 General Instructions for Certain Information Returns, and the 2020 Instructions for Forms 1099-INT and 1099-OID, U.S. Original Issue Discount. These instructions, and other forms, can be accessed through the official website of the IRS.
Forms 1099-INT and 1098. If you received mortgage interest during your transaction, do not report it on Form 1099-INT. Reporting of mortgage interest should be done on Form 1098, Mortgage Interest Statement.
Foreign recipient. The federal income tax should be withheld if the recipient is a nonresident alien. It is also necessary to file Form 1042-S, Foreign Person's U.S. Source Income Subject to Withholding.
Why did I receive a Form 1099-INT?
Recipients of the Form 1099-INT are the individuals, whom the financial institutions or any payers of interest income, have been paid interest during the year. You can utilize this form to organize how much or what kind of income you received this year.
Nominee recipient. If you received this form and it includes amounts belonging to other people, you should fill out Form 1099-INT for each of the owners indicated in the form. File Copy A with the IRS, then Furnish Copy B to each owner. List yourself as the “payer” and the other owner as the “recipient.” File Form 1099-INT with Form 1096, list yourself as the “filer.”
For future developments and the latest information regarding Form 1099-INT and its instructions, such as legislation enacted after they were published, go to the official website of the IRS.