Sometime in February, you might have received a 1099-INT tax form (or more than one) in the mail. Whenever you get one of these, you should hang on to it, because it can have a big impact on your tax life. Here's how Form 1099-INT works.
What is a 1099-INT?
A 1099-INT tax form is a record that a person or entity paid you interest during the tax year. If you earned $10 or more in interest from a bank, brokerage or other financial institution, you’ll receive a 1099-INT.
Simply receiving this tax form doesn’t necessarily mean you owe taxes on that money. You might have tax deductions that offset the income, for example, or some or all of it might be sheltered based on characteristics of the asset that generated it. In any case, remember: The IRS knows about it.
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What to do with a 1099-INT tax form
You use your IRS Form 1099-INT to help figure out how much income you received during the year and what kind of income it was. You’ll report that income in different places on your tax return, depending on what kind of income it was.
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What does my 1099-INT form mean?
If you received this tax form from a bank or other entity because you have investments or accounts that earned interest, you might also get a few other 1099 tax forms in the mail.
1099-DIV
The 1099-DIV reports dividends you received. This doesn’t include dividends on your share account at the credit union. The IRS considers those interest, so they appear on the 1099-INT.
1099-OID
You might receive Form 1099-OID if you bought bonds, notes or other financial instruments at a discount to the face value or redemption value at maturity. Typically, the instrument must have a maturity of more than one year.
1099-R
If you got distributions from a pension, retirement plan, profit-sharing program, an IRA or an annuity, you might receive a 1099-R. (Remember, many retirement plans are tax-advantaged, so this form might be simple record-keeping on behalf of the IRS.) If you took a loan from your retirement plan, you might have to treat it as a distribution, which means it might be on this form, too, as well as permanent and total disability payments under life insurance contracts.
FAQs
Visit your My NerdWallet Settings page to see all the writers you're following. The 1099-INT is a type of IRS form that shows how much interest an entity paid you throughout the year. You might receive a 1099-INT from your bank because it paid you interest on your savings.
Who receives a 1099-INT? ›
Interest-paying entities must issue Form 1099-INT to investors at year's end and include a breakdown of all types of interest income and related expenses. Brokerage firms, banks, mutual funds, and other financial institutions must file Form 1099-INT on interest of more than $10 paid during the year.
How do you determine who receives a 1099? ›
When a business pays an independent contractor for services performed in the course of that business, the service recipient must file Form 1099 MISC if the payment is $600 or more for the year, unless the service provider is a Corporation.
Who gets a 1099 from an individual? ›
Independent contractors, like freelancers and real estate agents, in the U.S. (citizens or non-resident aliens) filing a Form W-9 and other business service providers not on the payroll (receiving Form W-2) should expect to receive Form 1099-NEC from each client for payments exceeding the $600 or more reporting ...
Why did I get a 1099-INT from my mortgage company? ›
The 1099 Interest form is typically referred to as the 1099-INT. This document is sent if you had an escrow account that earned $10.00 or more in interest throughout the tax year. If your account earned less than $10.00 in interest, a form will not be sent.
Does everyone get a 1099-INT form? ›
Regarding missing form 1099-INT, if you have interest income of at least $10, you'll usually receive a Form 1099-INT. However, if you don't receive the form, you must still report your interest income earned.
Does a 1099-int count as income? ›
If you receive $10 or more in interest, you will receive a Form 1099-INT. This form shows the amount of interest you received, any taxes withheld, and if any of the interest is tax-exempt. You will report this income on your tax return.
Who does not receive a 1099? ›
Any payments made to corporations are exempted from sending form 1099-MISC or any other types. The exemption also includes payments to LLCs and partnerships that choose to be treated as S or C corporations.
Do I issue a 1099 to my cleaning lady? ›
You don't need to issue your housekeeper a form 1099. Your business must file a form 1099 with the IRS and to each unincorporated business or individual to whom you paid $600 or more during a given tax year.
Am I the payer or recipient on 1099? ›
You are the PAYER, so should write your name, mailing address, and phone number in the first box. 2. PAYER'S federal identification number is most likely your personal Social Security Number.
What is a 1099-INT? A 1099-INT tax form is a record that a person or entity paid you interest during the tax year. If you earned $10 or more in interest from a bank, brokerage or other financial institution, you'll receive a 1099-INT. Simply receiving this tax form doesn't necessarily mean you owe taxes on that money.
What is the minimum amount for a 1099-INT? ›
If a bank, financial institution, or other entity pays you at least $10 of interest during the year, it is required to prepare a Form 1099-INT, send you a copy by January 31, and file a copy with the IRS.
Do all independent contractors get 1099? ›
Businesses that pay more than $600 per year to an independent contractor must complete Form 1099-NEC and provide copies to both the IRS and the freelancer by the specified annual deadline.
What happens if I don't report 1099-INT? ›
If you don't include taxable income on your return, it can lead to penalties and interest. The IRS may charge penalties and interest beginning from the date they think you owe the tax.
Is there a difference between a 1099 and a 1099 INT? ›
The 1099 series of forms have different versions, each for a variety of purposes. The 1099-INT form is used to report interest income. Your bank or other financial institution might issue a 1099-INT form if you received interest income from a CD, or from a deposit account.
Who should I send a 1099-INT to? ›
File Form 1099-INT for each person: To whom you paid amounts reportable in boxes 1, 3, and 8 of at least $10. For whom you withheld and paid any foreign tax on interest. From whom you withheld (and did not refund) any federal income tax under the backup withholding rules regardless of the amount of the payment.
Do I need to report 1099-INT if less than 10? ›
Even if you did not receive a Form 1099-INT, or if you received $10 or less in interest for the tax year, you are still required to report any interest earned and credited to your account during the year. The payer's identification number and address are not needed.
Who gets a 1099 from my business? ›
Usually, anyone who was paid $600 or more in non-employment income should receive a 1099. However, there are many types of 1099s for different situations. Also, there are many exceptions to the $600 rule, meaning you may receive a 1099 even if you were paid less than $600 in non-employment income during the tax year.
Do you have to issue a 1099-INT to a corporation? ›
If you are also reporting OID, this interest and the OID can be reported on Form 1099-OID. You do not have to file both Forms 1099-INT and 1099-OID. You are not required to file or issue Form 1099-INT for exempt recipients including, but not limited to, the following. A corporation.
