1099-INT vs 1099-MISC: Which Form Do You Need in 2025?

We understand that filing taxes and sifting through the documents can be frustrating for many. But when it comes to the 1099-MISC and 1099-INT dilemma, it’s important to choose the right form.

Why Choosing the Right Form Matters

A wrong form can result in an IRS “mismatch” letter along with late fees and fines ranging from $60 all the way up to $660 per copy. Apart from the IRS, the correct form upfront can save you from frenzied calls from your vendors, prize winners, and investors.
Simply put, interest payments go on a 1099-INT, while everything else that isn’t regular wages typically is on a 1099-MISC. Understanding the difference between 1099-INT and 1099-MISC is the first step to tackling the tax season with confidence!

What Each Form Covers

1. “I” in 1099-INT stands for Interest

This form is used to report interest income earned from various sources. Consider this for things like:

• Interest from savings accounts or CDs
• Interest from peer-to-peer (P2P) lending
• Bond interest
• Interest from escrow accounts

Remember the ‘Dollar Rule’: If you pay $10 or more in interest to someone in 2025, this is when you need to use 1099-INT. But if you also took out any backup withholding tax, you must file a 1099-INT, no matter how small the interest amount is.

Most commonly, the filers are banks, credit unions, fintech lenders, and real estate escrow companies.

2. “M” in 1099-MISC stands for Miscellaneous Payments

Form 1099-MISC is used to report miscellaneous payments made during business or trade in a tax year, amounting to at least $600 or more.

Here’s a quick breakdown of what goes where on a MISC:

Box 1 (Rents): This includes payments for office space, equipment, or even farmland payments. 

Box 2 (Royalties): Money from books, music, or oil and gas. File this if it’s $10 or more. 

Box 3 (Other Income): This includes cash prizes, awards, punitive damages, late-fee interest on invoices, and severance to former contractors. File this if it’s $600 or more. 

Box 5 (Fishing-Boat Proceeds): Payments on the share of the catch. This can be any amount. 

Box 6 (Medical and Healthcare Payments): Consider hospitals, doctors, or labs. 

Box 10 (Attorney Gross Proceeds): Consider legal settlements paid to law firms.

The ‘Dollar Rule’ for Most Boxes: For most payments on the 1099-MISC, the filing threshold is $600. 

Quick Recap: If it’s interest, file 1099-INT. Everything else that isn’t wages? That’s when you need to use 1099-MISC (unless it’s true “services,” which is usually 1099-NEC).

 

1099-INT vs 1099-MISC: Deadlines You Can’t Miss!

Missing IRS deadlines for your 1099-INT and 1099-MISC forms can result in avoidable penalties. Remember, these forms are required when payments exceed specific thresholds, such as the 1099-INT threshold for interest payments and the 1099-MISC threshold for various other income types. Mark these dates on your calendar for your 2026 filings:

• 31 January, 2026: Give copies of both 1099-INT and 1099-MISC forms to your recipients. 

• 17 February, 2026: You get extra time for recipient copies only if your 1099-MISC just has payments in Box 8 or Box 10. Note that 1099-INT forms never get this extension. 

• 28 February, 2026: This is your last chance to mail in paper 1099-INT and 1099-MISC forms to the IRS. But this option is only for those who file fewer than 10 total information returns. 
• 31 March, 2026: This is the big electronic filing deadline. If you hit 10 or more combined returns (W-2s, 1099s, etc.), you must file electronically. 

Pro tip: If you’re pressed for time, you can e-file Form 8809 before March 31 for an automatic 30-day extension with the IRS. Remember, this doesn’t push back that January 31 deadline for giving copies to your recipients.

 

Your Pre-Filing Checklist 

Whether you’re dealing with 1099-MISC vs 1099-INT, if you want to make sure your tax filings are spot on, a little preparation goes a long way! 

• Collect W-9s: No Taxpayer Identification Number (TIN)? No payment! Keep those scans handy for at least four years. 

• Run an IRS TIN Match: You can do this for free online with the IRS, or it might even be built into your e-file software. This helps you fix “name/TIN mismatch” errors before you file. 

• Pick Your Form Wisely: Look at the payment. Was it an interest payment? Go with 1099-INT. Was it rent, a prize, or damages? That’s a 1099-MISC. 

• Flag Any Withholding: If you held back federal tax from a payment, mark Box 4, and for state tax, use Boxes 15-17. 

• Check State Rules: 15 states (CA, CT, DC, IA, KS, KY, MI, NC, NJ, OK, OR, PA, RI, VA, WV) need you to directly upload 1099 forms. Good e-file tools usually take care of this for you automatically. 

• Lock-in Dates: Mark these dates on your calendar! January 31, February 28, March 31, and February 17 (Box 8/10 exception).

 

Filling Out the Most-Used Boxes

Here is a cheat sheet on what most taxpayers will encounter while filling out boxes for both 1099-INT and 1099-MISC.

1099-INT:

The 1099-INT form is straightforward for most filers. Payers mainly use only two boxes (1 and 4)! 

 Box 1: This is the total amount of interest paid in 2025. 

Box 4: If you withheld any federal income tax, mention the amount here. Otherwise, leave it blank.

1099-MISC:

Focus on the Five Big Boxes!
Although 1099-MISC has several boxes, here are the five most used ones:

Box 1 (Rents): For total annual rent payments of $600 or more. 

Box 2 (Royalties): If the total annual royalties are $10 or more. 

Box 3 (Other income): Prizes, punitive damages, and late-fee interest. If the annual total is $600 or more, it goes here. 

Box 6 (Medical): Payments of $600 or more to doctors, hospitals, or other healthcare providers, even if they’re corporations. 

Box 10 (Attorney Proceeds): This is the gross amount of $600 or more paid to an attorney.

Note: Always leave empty boxes blank. Never type “0.” If, by some chance, a payee gets both forms (it happens, but it’s not common), give them different account numbers so that the IRS and the payee can match letters to payments.

 

1099-INT vs 1099-MISC: Your One-Upload E-File Game Plan

Are you ready to make filing your 1099-INT and 1099-MISC hassle-free? Look at this e-filing strategy that is sure to work:

Create a Single Spreadsheet: Include columns for Payer, Payee, Amount, Form Type (INT or MISC), Box Number, and any Withholding. This way, you can save time and avoid confusion. 

Upload to an IRS-Approved Platform: Choose a reliable service (like Tax1099 or similar) which are built to handle both 1099-INT and 1099-MISC forms seamlessly. 

Get Instant Validation: Once you upload, the software instantly checks your data against the IRS TIN database. It will flag wrong SSNs or bad ZIP codes in seconds, letting you fix them immediately. 

Preview Everything: Before you hit the final “send” button, download PDF packets, one for 1099-INTs and one for 1099-MISCs. Make sure to double-check all the totals! 

Hit Send: Once you click the send button, you’ll get an IRS Receipt ID instantly, which is your official proof that you’ve filed. 

Automatic State Forwarding: The platform automatically sends separate XML files (like INT20 and MISC20) to those direct-file states. This is no need for logging into multiple websites. 

Deliver Copies: The platform offers a secure email portal to send encrypted copies to your payees. For those who prefer paper, there is also an option of print-and-mail service. 

Dealing with Rejects: If a form gets rejected, simply fix the flagged row in your spreadsheet and resubmit. Do this before August 1, 2026, to stay in the lowest penalty tier.

 

Which Form to Choose? Five Real-World Scenarios

 Look at these five practical examples to know the difference between 1099-INT and 1099-MISC:

• If you paid $12 in bank interest to a recipient, file 1099-INT, as it exceeds the $10 rule. 
• Your company awarded a cash prize of $800 to an employee. In this case, file 1099-MISC Box 3 as it breaches the $600 threshold. 
• An investor received $25 in investment interest and a $200 platform rebate. Here, file 1099-INT for the $25 interest and 1099-MISC Box 3 for the $200 rebate. 
• If you incur a late-fee interest of $75 on a past-due invoice, file 1099-MISC, Box 3, since this type of late-fee interest is not reported on 1099-INT. 
• You paid $5 in interest and withheld 24% in backup withholding tax. File 1099-INT despite $5, as withholding overrides the threshold. 

 

1099-INT vs 1099-MISC: FAQs

If you still have some questions about 1099-INT and 1099-MISC, don’t stress. We’ve got you covered!

 

Q1. Can one payment ever require both 1099-INT and 1099-MISC?
No. A single payment does not require both Form 1099-INT and Form 1099-MISC. You need to classify the payment based on its primary purpose. 1099-INT reports interest income, whereas 1099-MISC reports miscellaneous income, such as rent, royalties, other nonemployee compensation, etc.

 

 Q2. Do I have to file a 1099-INT if the interest is less than $10?
Only if you withheld federal tax from that payment. Even if you haven’t received a Form 1099-INT, or if you’ve earned interest of $10 or less over the year, you’ll still need to report any interest that has been credited to your account during the most recent tax year.

 

 Q3. Does the 1099-INT ever get that February 17 extra time?
Never! That’s only for 1099-MISC copies that exclusively have payments in Box 8 or Box 10.

 

 Q4. I sent the wrong form! How do I fix it?
Firstly, don’t panic! You’ll need to file a CORRECTED form showing “0” for the incorrect form, and then a new ORIGINAL on the correct form. Do this before August 1, 2026, to keep those potential penalties low.

 

 Q5. Do corporations receive 1099-INTs?
No, corporations do get 1099-INTs for interest income. The IRS does not require payers to issue 1099-INT forms to corporations because corporations report their income and expenses on their own tax returns (Form 1120 for C corporations and Form 1120S for S corporations). However, corporations can report 1099-INT to report this interest income, which will flow through to their shareholders to be taxed.
On the other hand, a corporation could receive a 1099-MISC under certain exceptions. Generally, they don’t receive 1099-MISCs unless the payment falls into Boxes 6 or 10.

 

Q6. My state wants $0 filings. Is that right?
Yes, some states require you to file 1099-MISC or 1099-INT forms even if there are no reportable payments. Therefore, it is essential to check with the specific state’s Department of Revenue. IRS-authorized e-file software like Tax1099 handles these “zero filings” automatically and helps you stay compliant.