Tax Dictionary – Form 1099-INT, Interest Income

IRS Dictionary

This form is filed 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, or
  • from whom you withheld (and did not refund) any federal income tax under the backup withholding rules regardless of the amount of the payment.

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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.

If the FATCA box on your Form 1099-INT is checked, you may have a filing requirement under the Foreign Account Tax Compliance Act (FATCA). Don’t ignore this box if it is checked. Contact your tax professional if you are unsure of your foreign income filing requirements.

If you receive a Form 1099-INT and do not report the interest on your tax return, the IRS will likely send you a CP2000, Underreported Income notice. This IRS notice will propose additional tax, penalties and interest on your interest payments and any other unreported income. Learn how to handle an underreporter inquiry (CP2000).

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