Reporting Interest: 1099-INT
The first time you learned about interest was probably when you opened your very first savings account. The bank paid you a small amount to thank you for trusting them with your money. Now that you’re a full grown tax payer, you may be earning interest from a bunch of other accounts or investments, like interest-bearing checking accounts, retirement funds, or US Savings bonds.
The 1099-INT form is used to report your total annual interest income, as well as other information including any federal taxes withheld from that money, or fees you may have been charged for early withdrawal. This form containing your annual interest income numbers is normally available on the January 1st of every year, and you’ll usually receive it in the mail from your bank, other financial institution, or government agency. If you receive a 1099-INT in the mail, you may not have to pay any income tax on the interest it reports, but it’s still a good idea to report it on your return. Fill out your 1099-INT here.
Need a little help decoding your 1099-INT? Watch this: