Function

The purpose of a 1099-INT form is to report how much interest you received on deposit accounts that are considered non-qualified accounts by the Internal Revenue Service.

Types of Accounts

Non-qualified accounts are any type of account that is not considered tax-exempt. Accounts that meet this definition include checking, savings, certificate of deposits, and U.S. savings bonds that you redeem.

Features

Any account that earns more than $10.00 of interest during a calendar year must be recorded on a 1099-INT form. You will receive one 1099-INT form from each financial institution where you have a non-qualified account that earned more than $10.00 of interest.

Parts

The 1099-INT form lists the social security number of the primary, or first person, on the account, the account numbers, the amount of interest and any taxes that were withheld by the financial institution and already sent to the IRS. The form also lists any early withdrawal penalties paid by the account holder.

Effects

One copy of the 1099-INT form is sent to the account holder and to the IRS. The interest reported on the 1099-INT form is considered income, and you may need to pay federal, state and local income tax on the total amount.

Considerations

Because every individual's tax situations are different, consult a tax preparer or accountant to determine if you must pay taxes on your interest, and if so, how much.

Source:

Internal Revenue Service: 2009 Form 1099-INT