What is IRS Form 1099 INT All About?
IRS form 1099 INT: Interest Income
Let me guess, you are sitting at your kitchen table swamped with papers and your eyes are sore after peering at a computer screen for ages. It is crunch time for most tax filers. And the closer the due date is, the harder it gets to cope with everything. But we’ll try to make the whole tax filing process easier for you. In this article we give answers to your most common questions about the IRS form 1099 INT. Let’s get started.
What is the IRS form 1099 INT?
If you get interest income, you have to report it. For this, the International Revenue Service has introduced form 1099-INT.
To be precise, form 1099-INT is used to report interest income from banks and other financial institutions. Interest reported on form 1099-INT includes the interest paid on saving accounts and US saving bonds as well as interest earned and the penalties on the investments incurred by the investor during the tax year. Therefore all the financial institutions that pay you at least $10 have to send you form 1099-INT. It includes interest paid on:
• Saving accounts
• Certificate of deposit
• Money market accounts
• Treasury bonds
• Interest-yielding accounts.
Whom is 1099-INT issued?
At first glance, filing form 1099-INT does not seem a challenging task until you get to amounts. This is where you need to understand that you don’t have to send form 1099-INT alongside your tax returns. You only need to use information from it to fill out your tax returns.
What is the benefit of IRS form 1099 INT?
Actually, the main advantage of the form 1099-INT is that it serves as a guide to filing your returns. You will not have to pay any income tax on the interest reported in the form, but you will need to report it in your return.
When is form 1099-INT due?
Form 1099-INT belongs to the variety of 1099s in which each form has its particular due date. Since the IRS often introduces changes to the tax documentation, you have to check the deadlines for each form you are going to fill out.
In 2017, the recipient needs to get copy B of the 1099-INT form by January, 31 whereas Copy A must be filed with the IRS by February, 28, 2017 or by March, 31 if filed electronically.
How do I fill out the IRS form 1099 INT?
Form 1099-INT consists of 17 boxes, each one reporting specific type of interest. Of course, you don’t have to check all the boxes. You only need to check those that report information concerning your tax status.
As usual, form 1099-INT starts with the filer’s identifying information including name, address, SSN, and account number, which may be optional.
On the right of the form you’ll find boxes. Remember, that the information from the boxes must be used in your return. For example, the amounts from box 1 must be included into your return. The amounts from box 2 will help you take deductions in the corresponding section of your return. So check every box carefully to complete your return accurately.
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