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
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.
Who would I get a 1099-INT from? ›
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.
Who needs to fill out a 1099-INT? ›
Form 1099-INT is issued by all entities that pay interest income to investors during the tax year. It includes a breakdown of all types of interest income and related expenses. Payers must issue a 1099-INT by Jan. 31 of the new year for any party to whom they paid at least $10 of interest during the preceding year.
How do you determine who receives a 1099? ›
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 ...
Who needs to receive a 1099? ›
The 1099 form is used to report non-employment income to the Internal Revenue Service (IRS). Businesses are typically required to issue a 1099 form to a taxpayer (other than a corporation) who has received at least $600 or more in non-employment income during the tax year.
Why would I receive a 1099-INT from the IRS? ›
Other interest - Other interest paid to you by a business will be reported to you on Form 1099-INT if it is $600 or more. Examples include interest received with damages or delayed death benefits.
Why didn't I get a 1099-INT from my bank? ›
1099-INT and 1098 forms are issued based on guidelines established by the IRS . (For example: If your account does not receive at least $10 in interest, you won't receive a 1099-INT form.) You should review the IRS guidelines to see if they apply to your specific financial situation.
Who completes Form 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.
Can I file my taxes without my 1099-INT? ›
Share: 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.
Who is exempt from a 1099? ›
If the entity you paid for services is an S-Corp or C-Corp, you do not need to issue a 1099-NEC unless the payment was for legal services. Legal services are reported regardless of the type of entity the law firm is. Also, certain electronic payments are exempted. See more about exceptions below.
A 1099 recipient is any vendor that will be sent a 1099. A 1099 is a tax form, also known as an information return by the IRS, that documents certain business transactions with the IRS.
Which vendors should receive a 1099? ›
Payments for Services
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.
Can I give someone a 1099 if I paid them cash? ›
It's essential to understand the Cash Transactions Legality. While cash payments are legal, they require proper documentation for transparency and legality. A person or business that pays $600 or more to an independent contractor should issue a 1099 form regardless of the payment method, including cash.
Who doesn't 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 need to issue a 1099 to my cleaning lady? ›
One of the common misunderstandings around household employment is whether you should consider them an independent contractor and provide them a Form 1099-C during tax time. The short answer is no, you can't give your household employee a 1099.
What companies need to receive a 1099? ›
Anyone your business paid $600 or more in non-employee compensation over the year must be issued a Form 1099-MISC. According to IRS guidance, a form 1099-MISC may be required if a company makes the following types of payments: At least $10 in royalties or broker payments in lieu of dividends or tax-exempt interest.
How do I know where my 1099-INT came from? ›
Check your account statements. Call the organization that holds your money. Check the organization's website — That may be where to find 1099-INT that you can request and/or downloadable statements.
What if I don't get a 1099-INT? ›
If you received less than $10 in interest from your financial institution, they're not required to send you Form 1099-INT, but you're still supposed to report the interest. Although you didn't get a 1099-INT, report the interest in the 1099-INT section.
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.
How do I get a 1099-INT from Treasury? ›
If you still have securities in Legacy Treasury Direct, we mail you a 1099 at the beginning of each year. If you need a duplicate 1099-INT form for the current tax year, call 844-284-2676 (free call) or, from outside the United States, +1-304-480-6464.
