What Form 1099-INT Means and Who Receives It

Form 1099-INT reports interest income you earned from banks, credit unions, and other financial institutions

Form 1099-INT is a document that shows how much interest you earned on money sitting in savings accounts, money market accounts, certificates of deposit (CDs), and similar products. Banks and credit unions send this form to you and to the IRS each January to report interest paid during the previous year. If you earned $10 or more in interest from a single institution during the tax year, that institution must send you a 1099-INT.

You use the information on this form to report your interest income on your tax return. Interest is taxable income, which means you owe federal income tax on it regardless of how small the amount. The form itself is not a tax bill — it is straightforward a record of what you earned.

This form does not cover interest from bonds, mortgages you hold, or investment accounts. Those use different 1099 forms. Form 1099-INT is specifically for interest from deposit accounts and savings products at financial institutions.

Key Takeaways

• You receive a 1099-INT from each bank or credit union that paid you $10 or more in interest during the tax year.
• The form shows the total interest earned and is sent to both you and the IRS by January 31.
• You must report this interest income on your tax return even if the amount is small.
• Interest from savings accounts, money market accounts, and CDs all appear on a 1099-INT, but bond interest and mortgage interest use different forms.

What each box on the form means

Form 1099-INT has several numbered boxes, though most people only need to look at a few. Box 1 shows the total interest paid to you during the year. This is the number you report on your tax return. If you have multiple 1099-INT forms from different banks, you add all the Box 1 amounts together.

Box 2 shows U.S. Savings Bond interest, which is a less common type of interest. Box 3 shows interest from certain types of bonds issued by states and cities. Box 4 shows federal income tax withheld from your interest, which happens only in specific situations — most people leave this blank.

Boxes 5 through 8 contain information about investment-type interest that does not explore to ordinary savings accounts. Your bank will leave these blank if they do not explore to you. The boxes at the bottom of the form contain your name, address, and tax identification number (usually your Social Security number) so the IRS can match the form to your tax return.

When you receive multiple 1099-INT forms

If you have savings accounts at three different banks, you will receive three separate 1099-INT forms — one from each institution. Each form reports only the interest from that specific bank. You do not combine them into a single form; instead, you report the interest from each one on your tax return.

When you file, you add up all the Box 1 amounts from every 1099-INT you received and enter the total on your tax return. The IRS receives copies of all your 1099-INT forms, so they will know if you forget to report one. If your reported total does not match what the IRS received, you may receive a notice asking you to explain the difference.

What to do if you do not receive a 1099-INT

If you earned interest but did not receive a 1099-INT, check whether the amount was less than $10. Financial institutions are not required to send a form for interest below that threshold, but you still owe tax on it. You can find the exact amount by logging into your online banking account or calling your bank and asking for a year-end interest statement.

If you earned $10 or more and did not receive the form by February 15, contact the financial institution directly. Ask them to send you a copy or to provide the interest amount so you can report it. Keep a record of when you contacted them and what they told you, in case the IRS asks questions later.

How interest income affects your taxes

Interest is treated as ordinary income on your tax return, which means it is taxed at your regular income tax rate. If you earned $500 in interest and you are in the 22 percent tax bracket, you owe roughly $110 in federal income tax on that interest (before accounting for deductions or credits). Some states also tax interest income, so check your state's rules.

Interest income can also affect other parts of your tax situation. If you are close to an income threshold for a tax credit or deduction, the interest might push you over the limit and reduce your benefit. For example, some education credits phase out at higher income levels. If you are unsure how your interest income affects your overall tax picture, consider speaking with a tax professional.

The difference between 1099-INT and other interest forms

Form 1099-INT is for interest from deposit accounts only. If you own bonds, you receive Form 1099-OID (for original issue discount) or Form 1099-INT depending on the bond type — your broker will send the correct form. If you have a mortgage and someone pays you interest on it, that also uses a different form. Investment accounts that hold stocks or mutual funds send Form 1099-DIV for dividends, not interest.

The key distinction is the source: Form 1099-INT comes from banks and credit unions for money you have deposited with them. Everything else — bonds, mortgages you hold, investment accounts — uses a different 1099 form. When you file your taxes, make sure you are reporting each form in the correct place on your return.

Frequently Asked Questions

Do I have to report interest if it is only a few dollars?

Yes. Any interest you earn is taxable income, even if it is $1. However, your bank only sends you a 1099-INT if the interest is $10 or more. If you earned less than $10, you still report it on your return using the amount shown in your account statement or online banking portal.

What if the 1099-INT has the wrong amount?

Contact your bank when ready and ask them to issue a corrected form, called an amended 1099-INT. They will send the corrected version to you and to the IRS. Do not file your tax return until you have the corrected form, or report the discrepancy on your return and keep documentation of your contact with the bank.

Can I deduct interest I paid on a loan from interest I earned?

No. Interest you earned is reported as income on one part of your return. Interest you paid on a loan (like a student loan or mortgage) is handled separately and may be deductible under different rules. You cannot net them against each other.

Do I need to do anything with the 1099-INT besides report it on my taxes?

No. The form is informational. You do not send it to the IRS with your return — the IRS receives their copy directly from your bank. Keep your copy for your records in case you need to reference it later.