Function

The primary purpose of the form 1099-INT is to document the amount of interest you have earned during the year. The amount of taxable interest is listed in box 1 of the form.

Who Receives a Form 1099-INT?

You should expect to receive a form 1099-INT if your interest income from a financial institution exceeds $10 during the calendar year. This amount is cumulative for all of your accounts with each financial institution. For example, if you earned $6 of interest from your savings account and $3 from your money market account and $1.50 from your checking account, all at the same bank, you would receive a form 1099-INT.

Dates

If you are expecting a form 1099-INT, you should receive it by early February at the latest. Financial institutions are required by law to sent out the forms no later than Jan. 31.

Considerations

If you have put your money in accounts that receive tax-free interest, such as money market mutual funds that invest only in tax-free state and municipal bonds, that amount will be noted in box 8. This income is not taxable.

Features

Usually, federal taxes are not withheld from interest income; however, if you forgot to submit your taxpayer identification number or wrote the wrong number, 28 percent of the interest will usually be withheld. This amount is shown in box 4.

Source:

Form 1099-INT

MSN Money

Year-end Interest and Tax Reporting