eFile your Form 941 for Q2 by July 31, 2025 to avoid penalties. eFile 941 Now
W-2 Filing Available for All Businesses and Individuals
We are pleased to announce that all businesses and individuals can now file W-2 forms with Zenwork. If you previously received a letter from the Social Security Administration (SSA) regarding electronic wage report submissions, please note that the issue has been fully resolved. Our systems are fully operational, and we are processing W-2 and W-2C filings without any disruptions.
Thank you for your continued trust!
1099 Forms
Payroll Forms
STOCK OPTIONS
WAGE TAX FORMS
FORM 592-B
ACA FORMS
1098 FORMS
480 FORMS
Extension Forms
Form 8027
Form 8955-SSA
1042 FORMS
5498 Forms
STATE FILINGS
STATE Payroll Forms
STATE ONLY FILING
WEST
MIDWEST
SOUTH
NORTHEAST
File multiple returns through bulk upload and import data directly via QuickBooks, Xero, etc.
Manage multiple clients with a single sign-on and reduce operation workload with Tax1099.
Create, validate, schedule, and deliver forms effortlessly from a single platform.
Manage W-9, 1099-NEC, and other IRS forms for gig workers with our intuitive platform.
Verify Payees/Merchants with real-time TIN Matching and efile in bulk with our API.
Import and organize your trading data with our real-time data management.
TAX FORM FILING
Data Import & Management
USER & WORKFLOW MANAGEMENT
Validation & Checks
PRINT & DELIVERY
COMPLIANCE & security
ADDITIONAL FEATURES
Integrations
Acquire the help required from our support.
Visual guides to help you work with Tax1099
Stay up to date about latest IRS updates.
Read the real-life success stories of our users.
Explore industry insights & latest updates
The A-Z list for tax-related terms & definitions.
Detailed guides for smarter tax compliance.
Listen to thought-provoking insights and discussions with experts.
Tools
Form 1099-INT reports payments of $10 or more in interest from a savings account, Treasury bond, or tax-free bond. It also reports any federal income tax from interest payments or backup withholding, regardless of the minimum amount for 1099-INT reporting.
Banks, credit unions, lenders, investment firms, partnerships, and certain businesses that pay interest payments during a business or trade are required to file 1099-INT.
The interest can be paid either in cash or non-cash form (such as gift cards or merchandise for account-opening bonuses). When the interest is paid in non-cash form, the value of that item or FMV must be reported.
Payer tip: If your business pays interest, even for a one-time transaction, and it’s not part of payroll, you may need to file under 1099-INT filing requirements.
The 1099-INT reporting threshold is $10 or more for interest payments paid to a payee during a calendar year, even if they’re not explicitly mentioned as interest. This includes interest added to a person’s bank or credit union account, interest from savings and loan groups, life insurance companies, or loans, notes, and bonds, as well as amounts from checking or savings accounts, CDs, Treasury bonds, and certain insurance or escrow accounts.
Interest from complex investments such as WHFIT, REMIC, FASIT, or CDOs is also reported if they reach the minimum 1099-INT filing requirements or if backup withholding or foreign withholding tax applies.
The 1099-INT $10 rule applies to the total amount paid to one individual or entity under a single TIN, which means you must add up all interest paid across multiple accounts. Non-cash interest, like a $15 gift card for opening an account, is counted toward the $10 minimum.
Don’t let small interest payments slip through the cracks. IRS thresholds apply across all accounts and products. E-file 1099-INT with Tax1099 for seamless filing
Knowing when to file 1099-INT can sometimes go beyond just meeting the $10 threshold. Certain exceptions apply.
If you withheld any federal income tax (usually 24%) for missing/incorrect TINs or due to an IRS notice, you need to file a 1099-INT, regardless of the interest amount paid. The IRS requires filing in these cases even if the interest is less than $10. Using the real-time TIN Match feature by Tax1099 to verify TINs with IRS records is highly recommended to avoid backup withholding 1099-INT.
You must also file if any portion of the interest is subject to U.S. tax (such as certain foreign recipients).
You also need to report if the interest paid in the course of your trade or business is $600 or more in cases of delayed death benefits from life insurance companies, interest on damages received in lawsuits, interest on state or federal tax refunds, or interest related to certain financial contracts with nonperiodic payments.
Document all notices and communications regarding backup withholding. The IRS may require proof of compliance.
You must report the following payments if the interest income IRS threshold is met during the calendar year.
1099-INT filing requirements do not apply for the following types of payments:
Examples
To determine if the payments are above the 1099-INT reporting threshold, you need to:
Calculate the total interest paid to each recipient by aggregating all payments made to their TIN over a single calendar year. This includes interest from all accounts and sources for that recipient.
Include non-cash interest payments in the total interest calculation. These could be promotional items such as gift cards or merchandise. Use the FMV of those items.
For example, you pay $7 from one account and $4 from another account to the same recipient (same TIN), the total interest paid is $11. Since the interest payment is $10 or more, above the minimum amount for 1099-INT, the form must be filed and transmitted to the IRS, with copies sent to the recipient.
Most business accounting software solutions and banking platforms generate annual interest summaries or reports that help users track interest payments. You can integrate your accounting platform with Tax1099 to help verify and ensure the interest income is correctly captured and reported to the IRS.
Year-end best practice tip: Run a report before January 31 to catch last-minute changes or missed accounts.
Missing threshold filings
Smaller interest payments, like $5 from one account and $6 from another, might not seem reportable. But if it’s to the same TIN, you need to aggregate all the interest payments. In this case, the total aggregate exceeds the 1099-INT $10 rule ($5 + $6), so it needs to be reported.
Not reporting backup withholding
If the recipient gave you the wrong TIN or didn’t give one at all, filing 1099-INT becomes mandatory even if the payment amount is below the reporting threshold.
Incorrect recipient info
Filing with incorrect TIN or name increases the risk of IRS audits and can trigger backup withholding. Always validate recipient data before filing.
Filing for exempt recipients
Reporting interest payments paid to exempt recipients like a registered C-Corp not only wastes resources and time with unnecessary filing, but also creates unnecessary records and confuses the IRS.
Mistaking non-reportable payments
Not all interest payments require 1099-INT reporting. Interest on personal loans, interest credited to IRAs or 401(k)s are a few interest payments that should not be reported on 1099-INT.
Avoid Common Mistakes in 1099-INT With Tax1099
Tax1099, an IRS authorized e-filing platform, streamlines 1099-INT filing process and keeps filing compliant with IRS requirements using:
$9.50 Interest Paid (No Backup Withholding)
If the total interest paid to a payee by a bank is $9.50, the bank or payer is not required to file Form 1099-INT for this recipient. And since the payee provided accurate TIN, there is no backup withholding.
$15 in Interest Paid (No Withholding)
If a bank pays a payee $15 in interest payments, the bank will be required to file 1099-INT and send a recipient copy to the payee since the interest paid exceeds the $10 threshold.
$4 Interest, $1 Withheld
If backup withholding is triggered because a payee did not provide a TIN, 1099-INT filing becomes mandatory even if the interest payment is $4 (below the minimum amount for 1099-INT).
$6 from Savings, $6 from CD—Same Person
A recipient receives multiple interest payments from different accounts ($6 from Savings and $6 from CD). The total amount will trigger 1099-INT reporting since all the accounts are under the same TIN.
Interest Paid to a Corporation
Interest payments made to corporations do not require a 1099-INT filing, except in certain cases such as payments to certain partnerships, estates, or trusts.
$20 Gift Card for New Account
If a $20 gift card was provided to a recipient in connection with account opening, it must be treated as an interest payment and will require a 1099-INT filing.
No, you do not need to file Form 1099-INT if the total interest paid to a recipient is less than $10, unless backup withholding applies.
Yes, if the non-cash interest payments. like a $15 gift card, is tied to an account, the fair market value (FMV) of the item must be reported on 1099-INT.
Yes, you must aggregate all accounts and products made to a single recipient under one TIN. If the total exceeds $10, you must file Form 1099-INT.
The 1099-INT deadlines are:
The penalties for missing a required 1099-IN are:
Yes, backup withholding can be triggered even if the interest payment is just $1.
To determine whether a payment is in interest or not, check whether the payment represents taxable interest income or credited to a third party. If in doubt, consult the IRS instructions for Form 1099-INT.
Stay compliant—know the $10 1099-INT rule, aggregate all interest by recipient, and file on time with Tax1099 for a smooth, penalty-free tax season. Get Started Now