how to file form 1099 int interest income
form 1099 int is used to remit information relating to the amount of interest paid or received during a tax year 5 not all sections of form 1099 int must be filled out only relevant information that pertains to a specific taxpayer must be completed form 1099 int calls for the payer s name street address city state country zip code and telephone number the payer also needs to report its taxpayer identification number tin on the form 6form 1099 int also calls for the recipient s information the payer will usually have obtained this information in advance for example the institution asks for your contact information when you re setting up a new bank account so it s able to adequately issue form 1099 int at the appropriate time 6form 1099 int reports the recipient s tin name street address city state country and zip code the issuing party may list the individual s account number if multiple accounts are to receive a different form 1099 int although some lending institutions may aggregate the forms 6box 1 of form 1099 int reports the taxable amount of interest this amount does not include amounts reported in box 3 this box includes amounts of 10 or greater paid to an individual s savings account bank deposits dividends paid by a life insurance company and various other types of interest this box also includes interest of 600 or more paid in the course of a trade or business 6box 2 of form 1099 int reports the amount of principal or interest forfeited because of the early withdrawal of funds this early withdrawal must have been tied to a time deposit that had a stipulated maturity date the amount reported in box 1 is not reduced by the forfeiture deductible and the forfeiture is deductible from gross income by the recipient 6box 3 of form 1099 int reports the amount of interest earned on u s savings bonds treasury bills treasury notes and treasury bonds issued by the u s government this interest is not included in the amount of interest earned and reported in box 1 6box 4 of form 1099 int reports the amount of taxes withheld from interest payments a taxpayer must have a portion of the interest earned withheld from their payments if they don t promptly provide their tin when requested the applicable rate of withholding will vary the irs offers guidance on requesting the recipient s tin as part of federal tax form instructions 6the next commonly used box on form 1099 int is box 8 which reports the amount of tax exempt interest this type of interest is most often earned off of obligations issued by a state or other governmental entity this amount is not taxable and is not to be included in the taxpayer s gross income 6form 1099 int recipients may not have to pay income tax on the interest a payer reports but may still need to report it on their return the irs uses the information on the form to ensure the interest earner reports the correct amount of interest income on their tax return 7form 1099 int has 17 boxes in addition to the areas for the payer and recipient information many of these boxes are for very specific purposes consider consulting a local tax advisor to help you if you receive form 1099 int with information in any of the other boxes 6these other areas of form 1099 int cover foreign taxes private activity bond interest market discounts and more tax exempt investments boxes 15 16 and 17 are also used by taxpayers who participate in the combined federal state filing program to provide state tax information 6not receiving a form doesn t absolve taxpayers from having to report their interest income individuals who don t receive their 1099 int should contact the issuer and get a new one issued so they can include the interest received on their tax returns the minimum amount to issue a 1099 int is 10 but you must report your interest income on form 1040 each year even if it s less than this amount 7special considerations when filing form 1099 intsome types of entities or taxpayers are not required to receive form 1099 int even if they receive interest payments this list of exempt entities includes corporations tax exempt organizations any individual retirement arrangement certain health accounts u s agencies and other payees 1in addition form 1099 int is only used for interest issued by an individual from sources inside the united states paid inside the united states there are specific criteria that make interest payments exempt if paid by non u s payers or related to non u s instruments 1form 1099 int is used for interest payments but there may be conditions on when interest is actually paid consider payments where an individual is credited illiquid interest or is not allowed to withdraw interest earned in general interest is paid when it is credited to a taxpayer without substantial limits or restrictions interest must be made available so the taxpayer can draw on it at any time for savings bonds or other demand obligations interest is paid when the obligation is presented for payment i e when a coupon is detached from a bond and presented for payment 