Form 1099-INT is used to report interest income paid to a person through savings accounts, US Savings bonds, and interest-bearing checking accounts, or in the course of trade or business.
Who Receives Form 1099-INT?
The IRS instructs that a 1099-INT form must be completed for each person:
- To whom you paid amounts reportable in Interest Income, Interest on US Savings Bonds and Treas. Obligations, and Tax-Exempt Interest of at least $10; or at least $600 of interest paid in the course of your trade or business not meeting the Interest Income criteria;
- 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.
There are some notable exceptions that are not required to be reported on a Form 1099-INT. These include:
- Payments made to certain payees including, but not limited to, a corporation, a tax-exempt organization, any individual retirement arrangement (IRA), Archer medical savings account (MSA), Medicare Advantage MSA, health savings account (HSA), a U.S. agency, a state, the District of Columbia, a U.S. possession, a registered securities or commodities dealer, nominees or custodians, brokers, or notional principal contract (swap) dealers.
- Interest on an obligation issued by an individual.
- Interest on amounts from sources outside the United States paid outside the United States by a non-U.S. payer or non-U.S. middleman.
- Certain portfolio interest.
- Interest on an obligation issued by an international organization and paid by that organization.
- Payments made to a foreign beneficial owner or foreign payee.
- Tax-deferred interest, such as interest that is earned but not distributed from an IRA.
However, there are or may be some exceptions to the exceptions. It is always best to consult your tax advisor if you are unsure about the reporting requirements.
See the instructions for Form 1099-INT by the IRS for more details.
Need More Information?
For more information on Form 1099-INT filing, check out our other blog posts linked below:
- Gather information to prepare form(s)
- Check for accuracy
- E-file and distribute form(s)
- Check the deadlines
- Form 1099 Guide: Part 1 and Part 2
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BoomTax, The Boom Post, and its affiliates do not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors prior to engaging in any transaction.