What’s included on Form 1099-INT
Form 1099-INT separates your interest into a few categories:
- Ordinary taxable interest (like savings and CD earnings)
- Any penalty you paid for withdrawing a CD early
- Interest from U.S. savings bonds and Treasury obligations
- Tax-exempt interest like municipal bonds
Federal tax was also withheld and reported here if you were subject to backup withholding.
Who has to send you a 1099-INT
Individuals or institutions who paid you $10 or more in interest, such as:
- Banks
- Credit unions
- Brokerages
If you have accounts at multiple banks, you may end up with several separate 1099-INT forms to report.
Do you owe tax on the interest it reports?
Most interest reported in Box 1 and Box 3 is taxable at the federal level, and you report it as ordinary income. Box 8 tax-exempt interest, like interest from municipal bonds, generally isn’t taxed federally, though you may still need to report it, since it can affect other calculations like the taxability of Social Security benefits.
What if you earned interest but never got a form
The $10 threshold only determines when a payer must send you a form; it doesn’t determine what counts as taxable income. If you earned interest but the amount was too small to trigger a 1099-INT, you’re still required to report it on your return.
Where the numbers go on your tax return
Add up the Box 1 and Box 3 amounts from all your 1099-INT forms and report the total as taxable interest on your Form 1040 in the income section (currently line 2b). If your total taxable interest is more than $1,500, you’ll also need to file Schedule B, the form for listing each interest and dividend payer separately when your total is large enough.
