What Is Form 1099-INT for Interest Income Reporting?

Form 1099-INT is used to report interest income. Payers of interest income use this form to report the amount paid to investors at year’s end.

In this detailed 1099-INT guide, we’ll be breaking down what is Form 1099-INT, how to file each box accurately, deadlines, and more.

What Is Form 1099-INT?

Form 1099-INT is an informational return that reports interest payments, both taxable interest like bank deposits, CDs, late-payment interest, etc., and certain tax-exempt interest like municipal bonds, to the IRS.

The IRS requires interest income to be reported once it meets the 1099-INT threshold $10, meaning even small amounts can trigger a filing obligation for this particular form.

The form reports total interest paid in Box 1, interest on U.S. Savings Bonds and Treasury obligations in Box 3, tax-exempt interests in Box 8, as long as it meets the minimum $10 threshold. The form also reports any amount withheld under federal backup withholding rules.

Note: Check the “FATCA filing requirement” box if you’re reporting on Form(s) 1099 to satisfy your chapter 4 (FATCA) obligations.

Who Must File Form 1099-INT?

If an organization has made $10 or more in interest payments, they need to file 1099-INT. This includes:

• Banks, credit unions, and similar financial institutions paying interest on CDs, savings, and money market
• Insurance companies paying accumulated dividends or interest on delayed death benefits
• Mortgage and escrow services paying real estate escrow interests credited to borrowers
• Brokerage and robo-advisor firms for sweep-account interest, U.S. treasuries, and savings bonds
• Bond Issuers making qualified stated interest payments, OID on short-term obligations, and bearer CD payments
• SaaS platforms, B2B vendors, and businesses making late-payment interest on invoices or settlement interest payments
• Peer-to-Peer lending platforms paying note interest to investors

Exempt Recipients

1099-INT is not required for payments to certain exempt recipients (unless backup withholding is applied) including:

• Corporations
• IRAs & HSAs
• Government entities
• REITs
• Registered investment companies
• Common trust funds
• Certain tax-exempt trusts

When Do You Need to File 1099-INT?

• File a form for each person you paid amounts reportable in Box 1 for interest income, Box 3 for interest on U.S. Savings Bonds and Treasury Obligations, and Box 8 for tax-exempt interest.
• Each person for whom you withheld or paid any foreign tax on interest must be filed separately.
• File for each person from whom you withheld, without refunding, any federal income tax on the basis of backup withholding rules.
• There is no minimum requirement for this; you must file regardless of the amount of the payment.

Payments Reported on Form 1099-INT

Any interest payment, as long as it meets the 1099-INT $10 threshold and above requirements, must be reported to the IRS.

• Certificate of deposit (CD) interest
• Savings account interest
• Money market account interest
• U.S. Savings Bond interest
• Treasury bond, note, and bill interest
• Early withdrawal penalties from interest-bearing accounts (reported in Box 2, not Box 1)
• Municipal bond interest (reported as tax-exempt interest in Box 8, if applicable)
• Private activity bond interest
• Foreign taxes paid on interest income

Form 1099-INT: Box-by-box Guide

Here’s a detailed 1099-INT box guide to help you file interest payments accurately.

Box 1: Taxable Interest

Any taxable interest income that meets the 1099-INT threshold of $10 such as earnings are reported in Box 1. The interest could be from bank accounts, savings and loan associations, credit unions, life insurance policies, bonds, notes, or other interest-paying accounts.

Box 2: Early-withdrawal penalty

Withdrawing money from a time deposit account before it matures usually has a penalty. This penalty amount is then reported in Box 2.

Box 3: Interest on U.S. Savings Bonds & Treasuries

Interest earned on U.S. government securities, like savings bonds, Treasury bills, notes, and bonds have to be reported separately in this specific box.

Box 4: Federal income tax withheld

If TIN was not provided or is invalid, 24% of the payment is withheld as per federal backup withholding rules and reported in this box.

Box 5: Investment expenses (Single-Class REMICs)

This box reports only interest from REMIC (Real Estate Mortgage Investment Conduit). It is not deductible by the recipient.

Boxes 6 & 7: Foreign tax paid & Name of Foreign country

If any foreign tax was withheld from an interest income, report it in this box after converting to USD. You’ll need the report country/territory name as well.

Boxes 8 & 9: Tax-exempt interest & specified private-activity bond interest

Tax-exempt interests or certain private activity bonds like municipal bonds are also reported even though they are not taxable.

Box 10 to 13: Market Discount & Bond Premiums

If you bought a bond at a discount, that discount is considered “income” and is reported in Box 10.
Box 11, 12, and 13 report bond premiums that occur when you buy a bond for more than its face value.
Box 11 covers most tax bonds, Box 12 only applies to U.S. Treasury bonds, and Box 13 is for tax-exempt bonds (like municipal bonds).

Box 14: Tax-Exempt and Tax Credit Bond CUSIP No.

A single tax-exempt bond or a tax credit bond will usually have a specific CUSIP number tied to it. Report this number here. If there are multiple bonds, use “various”.

Boxes 15 to 17: State Information

These boxes are for state tax reporting and include the state’s name, state ID number, and any state tax withheld.

Form 1099-INT Deadlines 2025 TY (filled in 2026)

Forms must be transmitted to the IRS before the deadline. The due date for eFiling for Form 1099-INT is March 31. If the due date falls on a weekend or holiday, it will be due the next business day.

Real-Life Scenarios

• If a bank credits $35 CD interest to an individual, the amount has to be reported in Box 1 of 1099-INT since CD interests are considered reportable payments by the IRS.
• If a SaaS vendor pays $750 late-payment interest to a supplier, the interest amount needs to be reported on Box 1 of 1099-INT since the interest was received as part of a trade or business.
• If a brokerage credits $5 sweep interest but withholds 24% ($1.20) as per federal backup withholding rules, even if the amount is way below the reporting threshold, it still needs to be reported. The withheld amount will be reported in Box 4.
• If a credit union applies $200 early-withdrawal penalty on a 5-year CD with $1,400 gross interest, file 1099-INT and report the $200 in Box 1 and the $1,400 in Box 1.
• If a municipal-bond fund distributes $25 in exempt-interest dividends, the amount is not reported on 1099-INT since it doesn’t fall under the reporting requirements of 1099-INT. Instead, it’ll be reported on Form 1099-DIV.

FAQs

1. Does the $10 threshold always apply to Form 1099-INT?

The 1099-INT $10 threshold does not apply to federal or foreign tax backup withholding. You must file regardless of the amount the rule applies.

2. Are corporations exempt from 1099-INT?

Yes, corporations are exempt from reporting interest payments in 1099-INT, unless backup withholding applies.

3. Can multiple accounts for one recipient go on one 1099-INT form?

Yes, you can report multiple accounts in one single 1099-INT form if the TIN is the same across all accounts. You just need to combine the total reportable interest.

4. Is tax-exempt interest reportable on 1099-INT?

Yes, tax-exempt interest is reported in Box 8 of 1099-INT. Even if it’s not taxable, the IRS still requires it for informational purposes.

5. What if the recipient refuses a W-9?

If a recipient refuses to provide a W-9 form, you, the payer, should start the 24% backup withholding and report it on Form 945.

6. How long must tax records be kept?

As per IRS standards, tax records, including copies of filed 1099-INT forms, should be kept for at least 3 to 4 years in case of audits.

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