What Is IRS Form 1099-INT?

If you earned interest from a bank account, savings account, CD, or bond during the year, you'll likely receive a Form 1099-INT. It reports the interest income paid to you, and you're required to include it in your taxable income — even if you didn't receive a paper form.

What Gets Reported

Box 1 of the 1099-INT shows ordinary interest — what most savings accounts and CDs pay. Box 3 shows interest on U.S. Savings Bonds and Treasury securities, which is subject to federal tax but exempt from state and local taxes. Box 8 shows tax-exempt interest, typically from municipal bonds, which isn't included in your federal taxable income but does need to be reported on your return.

The $10 Threshold

Banks and financial institutions are required to send you a 1099-INT if they paid you $10 or more in interest during the year. If you earned less than $10, they're not required to send a form — but you still owe tax on it. All interest income is taxable unless specifically exempt.

Where It Goes on Your Return

Ordinary interest from Box 1 gets reported on Schedule B if you have more than $1,500 in total interest and dividend income. Otherwise, you can enter it directly on the relevant line of your Form 1040. The interest is taxed at your ordinary income tax rate, not the lower rates that apply to qualified dividends and long-term capital gains.

High-Yield Savings Accounts

With interest rates rising in recent years, more people are earning meaningful interest on savings accounts. If you moved money into high-yield savings, money market funds, or Treasury bills, the interest income may be larger than you expect, and you may owe more in taxes than you did in low-rate years.

If you receive a 1099-INT and don't report the income, the IRS will likely catch it through its automated matching program and send you a notice for the difference plus interest and penalties.