1099-INT Form

1099-INT Form

The 1099-INT Form is necessary to file when an interest payment has been made of at least $10 within the preceding tax year. There are several types of interest income and a corresponding box on the form for each type.

IRS 1099-INT reporting does not require the form be included when filing your taxes but the information is needed when completing your tax return.

1099-INT Reporting Requirements:

Box 1, Interest Income, is used to report any taxable interest income.  This includes any interest paid on savings accounts, money market accounts, certificates of deposit, interest-yielding checking accounts and treasury bonds.

Box 2, Early Withdrawal Penalty, is used to report on any penalty paid due to early withdraw from a bank CD.  This penalty is tax deductible against your gross income since the issuing financial institution kept a portion of the interest earned.

Box 3, Interest on US Savings Bonds and Treasury Obligations, is used to report on any and all interest from obligations of the US Government including treasuries and savings bonds. It is taxable at the federal level but qualifies for favorable tax-free treatment on state returns.

Box 4, Federal Income Tax Withheld, is used to report on any income tax that was withheld on behalf of the taxpayer by a bank or broker.

Tax forms

Box 5, Investment Expenses, is used to report on deductible investment expenses incurred on the behalf of the taxpayer by the financial institution.

Boxes 6 & 7, Foreign tax paid and Foreign country or U.S. possession, is used to report on interest which was paid by a foreign jurisdiction resulting in paying an applicable tax to that country. This information is needed to claim the foreign tax credit.

Boxes 8 and 9, Tax-exempt and Specified private activity bond interest, is used to report on all interest from tax-exempt issuers including states, municipalities, and U.S. possessions. Some municipal bonds with a specified, private activity are taxable for alternative minimum tax purposes, and interest from those obligations appears in Box 9 as well as Box 8.

Box 10, Market Discount, is used for reporting on the discount amount on bonds that were purchased at less than face value. A portion of this discount is taxable interest.

Boxes 11–13, Bond premium, is used for recognizing the amortized portion of the premium taken against income. Box 11 is for corporate bonds, Box 12 includes such amounts for Treasuries, and Box 13 has tax-exempt bond premium amounts.

Box 14, Tax-exempt and tax credit bond CUSIP number, is used for the identifying number of a single bond listed on the 1099 INT.  If more than one bond then enter Various in this box.

Boxes 15–17, State tax information, is used for reporting on any state tax withheld on the interest.

The 1099-INT tax form is due to the taxpayer by January 31st.  The 1099-INT deadline to file with the IRS is February 28th if paper filing and March 31st if filing electronically.  If the deadline date falls on a Saturday, Sunday or legal holiday, the deadline would be the next business day.

For more information, the 1099-INT instructions can be found here, https://www.irs.gov/pub/irs-pdf/i1099int.pdf