How to file1099-INT the Easy Way – 2025 Guide for Payers of Interest

August 8, 2025

Like all the variants in the 1099 series, form 1099-INT services an important role in reporting interest income correctly to the IRS. So, who qualifies as a Payer? What are the deadlines you need to remember? What are the interest reporting rules? This 1099-INT guide for payers will take you through everything you need to know to stay complaint and on top on your tax game!

Who is a Payer?

A payer is any organization that credits or pays at least $10 of interest (taxable, tax-exempt, or U.S. Treasury) to a non-exempt recipient during the calendar year. It can be banks, credit unions, brokerages, crowdfunding platforms, corporations, government entities, and other financial institutions.

Look at the following table to get an idea of the typical payers and the interest they report.

Payers	Interest They Report	Common Edge-Cases
Retail and online banks, credit unions	Checking, savings, CD, and share-draft interest	Credit-union “dividends” still count as interest
Broker-dealers and robo-advisors	Bond, note, and money-market fund interest	Don’t confuse OID with regular interest
Crowdfunding portals and payment processors	Escrow or wallet interest credited to campaign owners	Platform, not backers, is the payer
Corporations issuing private notes or employee loans	Note interest paid to investors or staff	C-corps receiving interest are recipients and are exempt
Government agencies and REMICs (Real Estate Mortgage Investment Conduit)	Savings bond, Treasury bill, or mortgage pool interest	Report Treasury interest in Box 3

Note:

If the recipient is a C-Corp, IRA, or other exempt organization, the payer usually does not file a 1099-INT. This is even if the $10 threshold is met.

Facts and Rules Payers Must Know

Fact	What the Payer Must Do	Date/Rule
$10 rule	File when yearly interest is $10 or more (or any amount if federal tax was withheld)	IRS trigger
Send to recipients	Deliver Copy B by January 31, 2026	Recipient deadline
File with IRS	E-file Copy A by March 31, 2026 (paper filers – March 2)	≥ 10 combined 1099s → e-file
Late fees	$60 – $660 per late or incorrect form	Penalty scale
Keep records	Keep forms, W-9s, and proofs of delivery for 4 years	Audit rule

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How to File 1099-INT? 5 Simple Steps for the Payer

So, how to file 1099-INT? Here are five simple steps you can follow to make the process seem effortless:

Collect and check W-9s: Start with collecting W-9s from all payees. Without the correct TIN, all your effort is useless. So, if you’re unsure about the TIN, the IRS expects you to withhold 24% of their payments. This is called backup withholding. It protects you from 1099-INT penalty and ensures you have the right information for filing.
Add up the year’s interest: At the end of the year, add every dollar of interest you paid. Also, don’t forget to add accounts that closed before year-end, escrow interest, and daily CD accruals credited at maturity.
Complete each form: Follow the box guide, explained in the next section of this blog, to report the right amount and other details. Always make sure you recheck all the numbers. A single typo or an incorrect figure might bring you under the IRS radar.
Send copies in the right order: By now, most of the hard work is done! All you have left is to send the copies to the recipients and the IRS. Make sure you stick to 1099-INT deadline 2026.
1. Send Copy B to the recipient by January 31, 2026
2. Send Copy A to the IRS by March 31, 2026, if you’re e-filing. If you’re paper filing, send it by March 2.
Correct errors as soon as possible: You are likely to make mistakes. If you spot them after filing, correct them quickly. Tick the “CORRECTED” box, enter the correct information, issue a fresh Copy B, and upload the replacement file within 30 days. The faster, the better!

Quick Box Guide for Payers

Box	What the Payer Reports	Watch-Out For
1	Total taxable interest paid	Credit-union “dividends” count here
2	Early-withdrawal penalties charged	Report the fee; don’t net it against Box 1
3	U.S. Savings Bond or Treasury interest paid	Keep it separate from Box 1
4	Backup federal tax withheld	Amount must match deposits to the IRS
6 – 7	Foreign tax & country withheld	Only if foreign tax was actually withheld
8 – 9	Tax-exempt & AMT interest	Mostly municipal bonds; remember Box 9
15 – 17	State information (optional)	Add state code + payer’s state ID when state tax is withheld

Note:

If the payer also issued an Original-Issue Discount, file Form 1099-OID instead of forcing OID into Box 1.

Real-Life Examples for Payers

Below are some real-life scenarios payers come across. Go through them to know when to file, and when not to.

Amount Paid	Should the Payer File?	Boxes
$8 interest to an individual	No – below $10	N/A
$45 interest to an individual	Yes	Box 1
$15 interest each to 12 trust beneficiaries	Yes – 12 forms	Box 1
$200 municipal-bond interest	Yes	Boxes 8 & 9
$500 CD interest to a C-Corp	No – recipient is exempt	N/A
$75 foreign tax on $400 interest	Yes	Boxes 1, 6, 7

Common Errors and How to Fix Them

Even pros make mistakes with 1099-INT filing. But if you catch them early and make corrections diligently, the IRS can be more lenient with 1099-INT penalty.

FAQs

1. Should a payer always e-file?

Yes, e-filing is mandatory when you have 10 or more information returns for the year.

2. Can a payer get more time to file? If yes, how do I go about it?

Yes, you can. File Form 8809 before the due date for a 30-day extension. However, this option is not available for 1099-NEC.

3. What should I do if the payee is a non-resident alien?

In this case, report U.S. bank-deposit interest on Form 1042-S, not 1099-INT.

4. Is state filing automatic?

Yes, if the state participates in the Combined Federal/State program. Tax1099 selects this for the payer when available. This saves you an extra layer of paperwork.

5. How long should I keep the records?

Always store all forms, W-9s, and other supporting documents for at least four years. It will come in handy in case of IRS audits.

6. Are payers allowed to include branding on recipient copies?

Yes, this is possible. But make sure the IRS-required wording and layout remain unchanged.

1099-INT e-filing Tips

Now that you know how to e-file 1099-INT like a professional, elevate your e-filing experience with a platform like Tax1099. You’re in for some great features that will help you save time and dodge penalties.

Bulk upload: You can file hundreds of forms in a few seconds. All you must do is export your year-end interest data as CSV/Excel and drag-and-drop the document to Tax1099.

TIN-Match: Mismatched TIN can result in IRS B-Notice. Tax1099 helps you tackle this too! Run an instant TIN Match using the built-in service on Tax1099 and catch errors before you file.

Status alerts: Stay informed at every step. Tax1099’s e-mail alerts keep the payer informed when the IRS accepts or rejects a file.

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Deadline Calendar

Stay on top of you 1099-INT filing by sticking to these deadlines. Mark your calendars!

January 15, 2026 – Finalize interest totals and complete TIN-matching
January 31, 2026 – Deliver recipient copies
March 2, 2026 – Mail paper Copy A (only if you’re paper filing)
March 31, 2026 – E-file Copy A (Tax1099 submits this for the payer)
April 30, 2026 – Last day to request penalty relief for honest mistakes