What Is Form 1099-INT: Interest Income?
The term Form 1099-INT refers to an Internal Revenue Service (IRS) tax form that is used by taxpayers to report interest income. The form is issued by all entities that pay interest income to investors at the end of the year. It includes a breakdown of all types of interest income and related expenses. Payers must issue a 1099-INT for any party to whom they paid at least $10 of interest during the year by January 31. One copy goes to the IRS while another copy goes to the taxpayer.
- Form 1099-INT is an IRS income tax form used by taxpayers to report interest income received.
- Interest-paying entities must issue Form 1099-INT to investors at year-end and include a breakdown of all types of interest income and related expenses.
- Brokerage firms, banks, mutual funds, and other financial institutions must file Form 1099-INT on interest over $10 paid during the year.
- Types of interest income for which Form 1099-INT is issued include interest on deposit accounts, dividends, and amounts paid to the holder of a collateralized debt obligation.
- Forms should be sent to recipients no later than January 31.
Who Can File 1099-INT: Interest Income?
Interest income is any amount paid by banks, investment houses, mutual fund companies, and financial institutions to account holders who deposit money into savings accounts, investments, and other interest-paying ventures. As such, Form 1099-INT must be filed for each person:
- Who receives at least $10 (reported in Box 1, 3, and 8) or at least $600 of interest paid in the course of your trade or business described in the instructions for Box 1.
- When a financial institution withholds and pays foreign tax on interest.
- From whom a financial institution withholds and doesn't refund federal income tax under the backup withholding rules regardless of how much is paid.
Amounts paid to taxpayers that must be reported on a 1099-INT include interest on bank deposits, accumulated dividends paid by a life insurance company, indebtedness (including bonds, debentures, notes, and certificates other than those of the U.S. Treasury) issued in registered form or of a type offered to the public, and amounts from which federal income tax or foreign tax was withheld. Much less common amounts that are recorded on Form 1099-INT also include:
- Interest accrued by a real estate mortgage investment conduit (REMIC)
- Financial asset securitization investment trust (FASIT) regular interest holder,
- Amounts paid to a collateralized debt obligation (CDO) holder
Form 1099-INT recipients may not have to pay income tax on the interest a payer reports, but may still need to report it on their return. The IRS uses the information on the form to ensure the interest earner reports the correct amount of interest income on their tax return.
How to File Form 1099-INT: Interest Income
The interest paid is considered taxable income and must be reported to the IRS on annual tax returns every year. The interest-paying entity must file a 1099-INT on any interest over $10 paid during the year. The form must be reported to the IRS and sent to each interest recipient by January 31 each year.
The amounts and types of interest will impact which tax form is to be used. Taxpayers who receive over $1,500 of taxable interest must list all of their payers on Part 1 of Schedule B on Form 1040. Form 1099-INT will always report interest paid as cash-basis income; this means that income that is owed but not yet paid cannot be reported on this form.
How to Fill Out and Read Form 1099-INT: Interest Income
Information in Form 1099-INT includes:
- Name and address of payer
- Name and address of the recipient
- Payer’s and recipient’s identification numbers
- Amount of interest paid ($10 or more)
- Amount of tax-exempt interest, such as that on municipal bonds
- Amount of interest paid on U.S. savings bonds and Treasury obligations, some of which may be tax-exempt
- Foreign tax paid
- Market discount
- Bond premium
- Bond premium on tax-exempt bond
- Federal income tax withheld
- State tax withheld
Not receiving a form doesn't absolve taxpayers from having to report their interest income. Individuals who don't receive their 1099-INT should contact the issuer and get a new one issued so they can include the interest received on their tax returns. And although the minimum amount to issue a 1099-INT is $10, you must report all of your interest income on Form 1040 each year.
Download Form 1099-INT: Interest Income
All copies of Form 1099-INT are available on the IRS website. You can download a copy of the form here.
What Is a Form 1099-INT?
Form 1099-INT is a tax form issued by interest-paying entities, such as banks, investment firms, and other financial institutions, to taxpayers who receive interest income of $10 or more. The information recorded on the form must be reported to the IRS.
Who Must File Form 1099-INT?
Form 1099-INT must be filed by any entity that pays interest, such as banks, brokerages, investment firms, mutual funds, and other financial institutions. They must file the form to anyone who receives interest income of at least $10, when they withhold and pay foreign taxes on interest, and whenever the issuer withholds federal income tax without refunding it. One copy must be sent to the IRS and another to the taxpayer.
When Do You Receive a Form 1099-INT?
Interest-paying entities must submit Form 1099-INT by January 31. Anyone who doesn't receive one should contact the issuer to get another copy.