How to Report Interest Income on Your 1099-INT Using H&R Block

Where to enter your 1099-INT information in H&R Block

H&R Block's tax software walks you through a series of screens that ask about your income sources. When you reach the section for interest and dividend income, the software will ask you to enter the information from your 1099-INT form — the name of the bank or financial institution that issued it, the account number, and the dollar amounts from each box on the form.

The exact path depends on which H&R Block product you use. In H&R Block Online (the web version), you typically find this under "Income" and then "Interest & Dividends." In H&R Block Desktop software, you navigate through the interview-style questions until you reach the interest income section. If you are using H&R Block at a tax office location, a tax professional will ask you for the form and enter the information for you.

You do not need to upload or attach the actual 1099-INT form to the software. The software only needs the numbers from it. However, you should keep the physical form or a copy in your records for at least three years in case the IRS asks questions later.

Key Takeaways

• H&R Block asks for interest income information in the "Income" section, and you enter the dollar amounts directly from your 1099-INT form.
• Box 1 of the 1099-INT (taxable interest) is the amount that goes on your tax return in most cases, though some interest may be tax-exempt.
• If you received interest from multiple sources, you enter each 1099-INT separately in H&R Block, and the software adds them together automatically.
• The software will calculate how this interest income affects your tax bracket and your total tax bill once you enter all your income sources.
• Keep your 1099-INT forms for your records even after you file, because they prove where the income came from if the IRS ever questions your return.

Understanding which box on the 1099-INT to use

The 1099-INT has several boxes, but most people only need to look at Box 1, which shows taxable interest. This is the number you enter into H&R Block. Box 1 is what the IRS expects to see reported on your tax return, and it is what the financial institution already reported to the IRS under your Social Security number.

Other boxes on the form show interest that may not be taxable or that goes on different parts of your return. For example, Box 3 shows U.S. Savings Bond interest, which has special rules. Box 8 shows interest on certain federal obligations that may be exempt from state income tax. Unless your situation is unusual, H&R Block will guide you through these boxes if they explore to you, and you will not need to figure them out on your own.

If you are unsure which box applies to your situation, H&R Block's software includes help text that explains each box. You can also look at the form itself — the IRS prints a description next to each box number.

What happens if you have multiple 1099-INT forms

If you received interest from more than one source — for example, a savings account at one bank and a money market account at another — you will receive a separate 1099-INT from each institution. H&R Block lets you enter each one individually. The software has a button or option to "add another" interest income source, and you repeat the process for each form.

The software automatically adds all the amounts together and reports the total on your tax return. You do not have to do any math yourself. Each 1099-INT you enter is recorded separately in the software's records, but they all combine into one line on your actual tax return (line 1a of Schedule B if you have more than $1,500 in total interest, or directly on Form 1040 if you have less).

Correcting a 1099-INT that has the wrong information

If the 1099-INT you received shows an incorrect amount or has your name or Social Security number wrong, contact the financial institution that issued it right away. Do not enter the wrong information into H&R Block. The institution will send you a corrected form, usually marked as a "corrected" 1099-INT.

Once you receive the corrected form, enter that information into H&R Block instead of the original. If you have already filed your return with the wrong information, you will need to file an amended return (Form 1040-X) once you have the corrected form. H&R Block can help you file an amended return, but it is a separate process from your original filing.

If the amount on the 1099-INT is correct but you believe the interest should not be taxable for some reason, that is a different issue. You would need to report the full amount on your return and then claim an adjustment or deduction if one applies to your situation. H&R Block's software will ask you questions about your circumstances and guide you to the right treatment.

How H&R Block reports your interest income to the IRS

When you file your return through H&R Block, the software automatically includes your interest income on the correct line of your tax return. The IRS receives your return electronically (if you e-file) or by mail (if you print and mail it), and the IRS also receives copies of all your 1099-INT forms directly from the financial institutions.

The IRS matches the amounts on your return to the amounts on the 1099-INT forms it received. If the numbers match, there is no problem. If they do not match — for example, if you reported less interest than the 1099-INT shows — the IRS will likely send you a notice asking for an explanation or demanding additional tax.

This is why it is important to report all interest income, even if the amount is small. The IRS has a computer system that flags mismatches automatically, and it is easier to report the income correctly the first time than to deal with an IRS notice later.

Interest income that may not appear on a 1099-INT

Not all interest you earn will show up on a 1099-INT. Financial institutions are only required to send you a 1099-INT if the interest is $10 or more in a calendar year. If you earned less than $10 in interest at a particular institution, that institution may not send you a form, but you are still required to report that interest on your tax return.

Additionally, some types of interest — such as interest on certain state and local bonds — may not be reported on a 1099-INT at all because it is tax-exempt. If you own bonds or other investments that pay interest, check your account statements or contact your financial institution to find out whether a 1099-INT will be issued and whether the interest is taxable.

When you enter your information into H&R Block, the software will ask you whether you have any other income that was not reported on a form. This is where you would report interest under $10 or interest that was not reported on a 1099-INT. H&R Block will add this to your total interest income.

Common mistakes when entering 1099-INT information

One frequent error is entering the wrong box amount. People sometimes confuse Box 1 (taxable interest) with other boxes or enter a total from their account statement instead of the amount shown on the form. Always use the number in Box 1 unless H&R Block's software specifically asks you for a different box.

Another mistake is entering the same 1099-INT twice. If you have multiple accounts at the same institution, each account gets its own 1099-INT, and you need to enter each one. But if you accidentally enter the same form twice, you will overstate your income. H&R Block's software does not automatically prevent this, so double-check your entries before you file.

A third common issue is forgetting to report interest that was not on a 1099-INT. If you earned interest that fell below the $10 reporting threshold or interest that is not reported on a form, you need to add it manually. The software will ask, but it is straightforward to miss if you are moving quickly through the interview.

Frequently Asked Questions

Do I have to report interest income if it is less than $10?

Yes. The $10 threshold only determines whether the financial institution sends you a 1099-INT form. You are still required to report all interest income on your tax return, no matter how small. H&R Block will ask you if you have other income not reported on a form, and that is where you would enter it.

What if the 1099-INT shows interest I did not actually receive?

Contact the financial institution when ready and ask them to issue a corrected form. Do not file your tax return with incorrect information. Once you have the corrected form, enter that information into H&R Block instead. If you have already filed, you will need to file an amended return.

Can I deduct any expenses related to earning interest income?

Generally, no. Interest income is reported as-is on your tax return, and you cannot deduct expenses to earn it. However, there are limited exceptions for certain investment-related expenses, and H&R Block's software will ask you questions about your situation if those exceptions might explore to you.

What if I earned interest in a tax-exempt account like a Roth IRA?

Interest earned inside a Roth IRA, traditional IRA, or other retirement account is not reported on a 1099-INT and does not go on your tax return. The financial institution does not send you a form for it. You only report contributions to and withdrawals from these accounts, not the interest they earn.

Do I need to keep my 1099-INT forms after I file?

Yes. Keep them for at least three years. The IRS can ask questions about your return during that time, and the 1099-INT proves where your interest income came from. After three years, you can discard them, though some people keep them longer for their own records.