Written by the TaxPlain Editorial Team · Reviewed for accuracy · Last updated July 2026
⚠️ Educational only. TaxPlain does not provide tax, legal, or financial advice. Always consult a qualified tax professional about your specific situation.
What this is
A 1099-INT is an information return that banks, credit unions, brokerages, and other financial institutions send you when they've paid you $10 or more in interest during the year. It's not a bill and it's not something you fill out yourself — the payer fills it out and sends copies to both you and the IRS.
The form exists so the IRS can cross-check what you report as interest income against what financial institutions say they paid you. If the numbers don't match, that mismatch is one of the most common triggers for an IRS notice like a CP2000.
You'll typically receive a 1099-INT for savings accounts, CDs, money market accounts, and sometimes bonds — anywhere your money earned interest, rather than dividends, which are reported separately on Form 1099-DIV.
Who it affects
✓ Applies to
Anyone who earned $10 or more in interest from a single payer during the tax year — savings accounts, CDs, high-yield accounts, and similar.
↑ Also applies to
Some payers send a 1099-INT even below $10 if backup withholding applied. You're required to report interest income either way, form or no form.
📅 WHEN IT ARRIVES
Financial institutions must mail or make 1099-INT forms available by January 31. If you haven't received one by mid-February despite earning interest, check your online account or contact the institution directly before filing.
Box-by-box breakdown
What each box on Form 1099-INT means
The 1099-INT has more boxes than most people expect, but most filers only need to worry about a handful. If you're also selling investments, note that gains are reported differently — see how capital gains work.
Box 1 — Interest income — The total taxable interest paid to you during the year. This is the figure most people are looking for.
Box 2 — Early withdrawal penalty — Any penalty you paid for cashing out a CD or time deposit early. This amount is deductible even if you don't itemize.
Box 3 — Interest on U.S. Savings Bonds and Treasury obligations — Reported separately because it may be exempt from state and local tax.
Box 4 — Federal income tax withheld — Only filled in if backup withholding applied, often because a W-9 wasn't on file with the payer.
Box 8 — Tax-exempt interest — Interest from municipal bonds. It isn't taxed federally, but it still has to be reported on your return.
Box 11 — Bond premium — Relevant if you paid more than face value for a taxable bond, since it can reduce your reportable interest.
Related forms often involved
A 1099-INT rarely shows up alone. If you hold interest-bearing accounts, there's a good chance the same institution is also sending other 1099s, and the totals feed into different parts of your return.
Schedule B — required if your combined interest and dividend income exceeds $1,500 for the year
1099-DIV — shows dividends and capital gain distributions, often from the same brokerage
1099-MISC — covers other types of miscellaneous income you might receive alongside interest
1099-OID — used instead of a 1099-INT for bonds issued at a discount, a common point of confusion
Common mistakes to avoid
⚠️ IGNORING INTEREST UNDER $10
Just because a bank doesn't send you a form doesn't mean the income isn't taxable. All interest income is reportable, regardless of whether you receive a 1099-INT.
⚠️ FORGETTING SCHEDULE B
Filers who cross the $1,500 combined interest-and-dividend threshold often forget to attach Schedule B to their Form 1040, even after correctly listing the income.
What to do right now
Gather every 1099-INT you receive by mid-February and match the totals against your own account records. If you earned interest but never got a form, don't skip reporting it — log into your online banking or brokerage account to pull the exact figure before you file.
Questions to ask your tax professional
01Do I need to attach Schedule B given my combined interest and dividend total?
02Is any of my reported interest actually tax-exempt and mislabeled?
03Should I adjust my withholding if I'm consistently earning taxable interest?
04How does bond premium in Box 11 affect what I actually owe?
05If I didn't receive a 1099-INT but earned interest, how do I report it accurately?
Frequently asked questions
What is a 1099-INT?
A 1099-INT is a tax form that banks and other financial institutions send you when they've paid you $10 or more in interest during the year, so you can report it as income and the IRS can verify it.
Do I have to report interest under $10?
Yes. Financial institutions aren't required to send a 1099-INT for amounts under $10, but you're still legally required to report all interest income, no matter how small.
What does Box 1 on a 1099-INT mean?
Box 1 reports your total taxable interest income for the year from that payer. It's the figure most filers use when entering interest income on their tax return.
What's the difference between a 1099-INT and a 1099-DIV?
A 1099-INT reports interest income, typically from savings accounts and CDs, while a 1099-DIV reports dividends and capital gain distributions from stocks or funds. They're separate forms even when issued by the same brokerage.
What happens if I don't report a 1099-INT?
If the IRS has a copy of your 1099-INT and it's missing from your return, the mismatch can trigger an automated notice, such as a CP2000, proposing additional tax owed.