IRS Form 1099-INT walkthrough (Interest Income)

[@wavesnbikes]

I received one from the California Department of Tax Fee Adm for $11.09 for Interest Income for our Non-Profit Assn. Very informative. Thank you.

[@shannybear]

I have a savings account that made $3,800 in interest last year however, this was my only source of income. Do i still need to file? I live in Ca. Thank you

[@Ben-jl2rh]

Quick question i got a letter from my bank about an interest income statement, and it just shows a money amount that requires a 1099--INT Copy B form. Box's 1-4 are blank but it just has a total & a money amount. Im confused as to where I put it in the 1099.

[@teachmepersonalfinance]

I'm not sure why you would be completing a Form 1099-INT. Copy B should be the version that your bank issues to you. Did you not receive it form your bank?

[@Ben-jl2rh]

@teachmepersonalfinance2169 I did receive the tax document, but not the 1099. It had the instructions on where/what to use but nothing else. It was very vague. It just said Money Market account interest for 35$. I recently opened a savings account that incurs interest, and the file I got required me to add it to my taxes but didn't say anything else

[@teachmepersonalfinance]

@@Ben-jl2rh It seems that you would report the interest on your Form 1040 under taxable interest (Line 2b), and move forward. Is there something I'm missing?

[@Ben-jl2rh]

@@teachmepersonalfinance Thank you; you were quite the help

[@utkarshchhadva3226]

Hi, thanks for such an illustrated example - truly helpful! My question is, if all boxes from 2-13 and 17 are blank on my 1099-INT, should I keep them blank or input $0.00? Also, in box 15, should I put in my state? Thanks in advance!

[@teachmepersonalfinance]

Form 1099-INT is an information return, which means you do not need to enter anything on the tax form itself. If no state is reported, this means that your financial institution does not have a state on file for you, or that you live in a state without income tax. If you have to pay state income tax, then you should include this income in your state tax return. If you live in a state without a state income tax, then you don't need to do anything.

[@utkarshchhadva3226]

@@teachmepersonalfinance thank you! I do live in a state where I pay state income tax, but since box 17 is blank, I do not need to do anything, right?

[@teachmepersonalfinance]

@@utkarshchhadva3226 I wouldn't say that. I would assume that a copy of this tax form is being provided to your state tax department. From there, you'll be expected to report this income, then pay any income taxes that are calculated as a result of reporting that income. Box 17 simply indicates that to this date, zero state income tax has been withheld.

[@utkarshchhadva3226]

@@teachmepersonalfinance got it! Thank you! How do I access the copy that has been provided to the state to report any income?

[@KazooChin]

Hey, thanks for this video. I just received one of these from my bank and I'm not sure how to go about it exactly. 1: They say to report it but I'm not sure how or where. 2: Do I just have to wait to report it on my upcoming tax return?

[@teachmepersonalfinance]

You would report it on your tax return, but I can't really tell without being able to look at it. You can read this article, which goes line by line, to determine where on your tax return you should report this: IRS Form 1099-INT, Interest Income Article: www.teachmepersonalfinance.com/irs-form-1099-int-instructions/ Video: kzbin.info/www/bejne/jXPRqqZ_ftylopI

[@KazooChin]

@teachmepersonalfinance thank you so much. I forgot to mention some things if you don't mind I'd like to hear about it. Im unemployed for the year and upcoming and i received a fairly matured bond with over a thousdand dollars of interest it said, plus $7 of interest pay on my savings account. How would this change things?

[@peachcloudx1672]

hello! I have a question about adding this to my taxes--- do I add it to box 1 of my W2??

[@teachmepersonalfinance]

Generally, you would report taxable interest on Line 2b of your Form 1040, and tax-exempt interest on Line 2a of your Form 1040. Your W-2 is your pay statement that you'd receive from an employer. I've attached some links to resources below for reference: IRS Form W-2, Wage and Tax Statement Article: www.teachmepersonalfinance.com/irs-form-w-2-instructions/ Video: kzbin.info/www/bejne/bKG0d2Vvp9ecsMU

[@J-2024-v8i]

Thank you for the detailed video!. If you purchased a new issue tax-exempt bond at a premium and it matured in 2023 just over one year after purchase, should the premium paid be reported in box 13 and subtracted from box 8 if box 8 is showing the gross tax-exempt interest instead of the net? My broker is not showing any premium in box 13 and, since box 8 just shows the gross interest, I was wondering if this is an error/omission by the broker. For reference, the bond was purchased on 12/13/2022 and it matured on 12/25/2023. Thank you!

[@J-2024-v8i]

I forgot to mention that the gross interest received is greater than the premium paid.

[@teachmepersonalfinance]

@@J-2024-v8i According to the form instructions, your broker should have left Box 13 blank if they netted out the tax-exempt interest in Box 8. You could ask the broker for a corrected statement, which would either fix this or lead to an explanation of how they reported it differently from the way you expected. But before I went too far with this, I'd take a closer look to see if this significantly impacts your tax situation, or creates any modified AGI issues (like if you're susceptible to IRMAA for Medicare premiums, close to a phase-out of Roth IRA contributions, credit phaseouts, etc.). If nothing significantly impacts your taxes, and the tax-exempt income isn't that great, then maybe it's not worth going through the hassle. If they won't reissue the Form 1099, then you might need to contact the IRS for help: www.irs.gov/newsroom/what-to-do-when-a-w-2-or-form-1099-is-missing-or-incorrect

[@J-2024-v8i]

@@teachmepersonalfinance Thanks so much for the detailed reply!. I know this does not affect my regular tax, but I am on ACA and therefore trying to control my MAGI for ACA subsidies as it adds back tax-exempt income. Thanks again and thank you for your great videos!

[@bobbytube99]

I paid interest (I borrowed money) . I paid about 10K in interest to my lender. Do I need to provide 1099 INT to him?

[@teachmepersonalfinance]

According to Treasury Regulations 1.6049-5, you do not, since you are an actual person (not a financial institution or insurance company). You only need to provide a Form 1099-INT if you're offering debt to the public or as a registered security, if you are a bank or similar institution (savings and loan, credit union, mutual savings bank), insurance company, broker-dealer, or investment adviser. www.law.cornell.edu/cfr/text/26/1.6049-5

[@LauraKittie]

Hello I came across this video .I have a 1099 statement and line 1is less than 12 and all the lines are empty should I file ?

[@teachmepersonalfinance]

I assume you mean that Line 1 is less than $12, correct? If this is the case, I would still report the interest income on Schedule B, since the IRS will be looking for this income to be reported on your tax return. If you don't, there is a chance that this might not reach the threshold where the IRS would track you down (in other words, you might be fine if you don't report it), but if you have the form, I always recommend that you report the income.

[@tiffanylebel9687]

If you’re filing online, would you file a 1099-int in the same area as you report a 1099?

[@teachmepersonalfinance]

If you're filing online as an individual taxpayer and you received IRS Form 1099-INT, you shouldn't have to file IRS Form 1099-INT. You should use the information reported to you on your tax return. For example, tax-exempt interest is reported in Line 2a of your Form 1040, while taxable interest is reported on Line 2b. Under certain circumstances, you may need to file Schedule B with your tax return: IRS Schedule B, Interest and Ordinary Dividends Article: www.teachmepersonalfinance.com/irs-schedule-b-instructions/ Video: kzbin.info/www/bejne/Y2PEo6imqbtoi80

[@alexbobis5616]

Hi! First time to have this form and there is one that have an amount. Its the interest income. Do i need to fill it all out?

[@teachmepersonalfinance]

If you received this form, then you do not need to fill it out. However, you should use the information that was reported to you to complete your income tax return.

[@franpizarro98]

Hi! I'm a foreign non resident alien, and I have a checking account in the US. Do I have to file it if I got $1.06 in income tax? And if I don't have a ITIN (I only have my country's tax number)

[@teachmepersonalfinance]

I don't know enough about your tax situation to know whether or not you should file a U.S. income tax return. However, IRS Publication 519, page 51 outlines filing requirements for non-resident aliens (and exceptions to filing requirements). www.irs.gov/pub/irs-pdf/p519.pdf If you do need to file, and if you must have an ITIN, then you can apply for one by filing IRS Form W-7 (see below). IRS Form W-7, Application For IRS Individual Taxpayer Identification Number Article: www.teachmepersonalfinance.com/form-w-7-instructions/ Video: kzbin.info/www/bejne/oJTYqoOnl7N-nMU

[@glenorystigger835]

Whats about a person social security number and there treasury with 1099 forms and 1040 1096

[@teachmepersonalfinance]

I'm not sure that I understand your question. Could you clarify it for me?

[@user-dw6in5zs7m]

I'm not sure what to put on box 17, it's blank on my form but it's telling me box 17 should have a value if the state identification number has a value. I do have a value on box 16 but nothing on box 17. How do I find the value for box 17 State tax withheld. I'm from California

[@teachmepersonalfinance]

If you received this form from a financial institution, then Box 17 represents the amount of state income tax your financial institution withheld from your interest income. In this case, if there is not a value in Box 17, this should indicate that your financial institution did not withhold any state income taxes.

[@danicasaludes4840]

Hello, I got this form a few weeks after I already filed. On my 1099-INT form there's only an amount on box 1 and nothing else in boxes 2-17. Should I amend my taxes still?

[@teachmepersonalfinance]

I would consider waiting until after tax season before doing anything. After that, it's up to you. A small enough number (like $20 in interest income) might not make that much of a difference. A larger number, like $2,000, might eventually get noticed by an IRS examiner, but probably not this calendar year. If it does, most of the time, you'll receive notification from the IRS that they recalculated your tax liability, based upon the difference between your tax return and what it should have been, then send you a bill for the difference, plus interest. You can minimize the amount of interest by amending your return if you want (this would technically be the right answer, and the one that most tax professionals feel compelled to tell you) or you can wait for the examiner to send you a notification, if they even do so. You might consider discussing with a CPA to see if it's even worth the cost of filing an amended return (this might be the more practical answer).

[@teachmepersonalfinance]

@dbnydnvn I always advise discussing this type of situation with the person or firm that prepared your tax return. They usually have the best insight on how to do this as efficiently and cheaply as possible (remember, they already have your tax information, so it would be much easier for them to create the 1040-X than for someone else to get your information then try to get up to speed). The problem with saving for next year is that it's not technically the correct answer. Which means that if the IRS did look into this situation, then the solution to your first problem might cause subsequent problems, and you'll be expected to fix both of them the next time around.

[@danicasaludes4840]

@@teachmepersonalfinance thank you! this helped a lot.

[@maribelcz5106]

Good day! My bank sent me the 1099-int form and I wanted to know if I can declare it after January 31, what would be the deadline? I would greatly appreciate your response.

[@teachmepersonalfinance]

You can report this income after January 31, when you file your tax return. January 31 is the date that the bank must send the form.

[@nholie9472]

i received a 1099 int from the irs saying i have taxable income paid to me from them. its $32.05 but im not sure how to input this into tax slayer. Do I put the IRS as the payer?

[@teachmepersonalfinance]

If you received a Form 1099-INT reporting taxable income the IRS, then the IRS would be listed as the taxpayer. I am not familiar with the intricacies of tax preparation software, but if Tax Slayer is asking for the name and information of the payer, then you would list the IRS as the payer.

[@nholie9472]

@@teachmepersonalfinance wow thank you for getting back so quickly!

[@blesd1504]

How does the taxpayer fill out a 1099-INT for interest income received as a nominee for someone other than a spouse?

[@teachmepersonalfinance]

Although this video and its accompanying article were intended for recipients, you could report the specific interest items in the related boxes on Form 1099-INT if you received interest income as a nominee for any taxpayer. Here are a couple of notes from the form instructions: 1. If you make payment on a U.S. Savings Bond or other U.S. obligation on which interest is reportable, enter your name, address, and TIN on Form 1099-INT and Form 1096, Annual Summary and Transmittal of U.S. Information Returns, not those of the U.S. Treasury Department or the Bureau of the Fiscal Service. *Links to resources on IRS Form 1096 below* 2. You are not required to file or issue Form 1099-INT for exempt recipients including, but not limited to, the following. • A corporation. • A broker. • A middleman/nominee. • A financial institution. • Any IRA, Archer MSA, Medicare Advantage MSA, or HSA. • A tax-exempt organization. 3. Report interest that is taxable OID in box 1 or 8 of Form 1099-OID, Original Issue Discount, not on Form 1099-INT. If you are a broker or middleman who holds a bank CD as nominee, whether or not you sold the CD to the owner, you must determine the amount of OID includible in the income of the owner, if any, and report it on Form 1099-OID (*see links below*). IRS Form 1096, Annual Summary and Transmittal of U.S. Information Returns Article: www.teachmepersonalfinance.com/irs-form-1096-instructions/ Video: kzbin.info/www/bejne/d4GQqKapha-Un9E IRS Form 1099-OID, Original Issue Discount Article: www.teachmepersonalfinance.com/irs-form-1099-oid-instructions/ Video: kzbin.info/www/bejne/jKbXpqSFdsaAqKs

[@kaynperez7395]

All my other boxes are empty except box 1. What do I do?

[@teachmepersonalfinance]

You would report the Box 1 item as interest income on your tax return. If your interest income is less than $1,500, you can enter it directly onto Form 1040, Line 2b. If your interest income is $1,500 or greater, you may need to file Schedule B: IRS Schedule B, Interest and Ordinary Dividends Article: www.teachmepersonalfinance.com/irs-schedule-b-instructions/ Video: kzbin.info/www/bejne/Y2PEo6imqbtoi80

[@carnal.russ508]

Hi! I've never filed taxes, and I'm unsure whether I have to report my 1099-int form. I received roughly $74, and throughout 2023, I made below $6,000. I live in California, and I'm sure I don't have to file taxes, but now this form is tripping me up. Where do I stand? Is it mandatory for me to file it either way?

[@teachmepersonalfinance]

Based on the information you gave here, I'm inclined to believe that you don't need to file your 2023 tax return with the IRS. I'm not totally sure about California taxes.

[@Xero_Cars]

how would i file my 1099-INT if the box 1 was left blank? I dont actively use the bank i cashed my bond into and only went there because my primary bank couldnt cash in the bond for me

[@teachmepersonalfinance]

You would need to report other income items as they appear on the form, based on the form instructions. It's hard to give exact assistance, since I'm not sure which fields have been populated on the Form 1099-INT that you received. If you're able to tell me what appears on the form, I might be able to help you a little better.

[@Xero_Cars]

@@teachmepersonalfinance well all i did was cash in a patriot bond. and since its a bank i dont use it doesnt have any other income on the service they use. So the only numbers i have on my 1099 is the amount the check was cashed in for at the bank on line 3. besides that the paper has no other income

[@teachmepersonalfinance]

@@Xero_Cars OK. In this case, it's pretty straightforward. I'd just report the Line 3 amount as interest income on your tax return. However, if you cash in an EE bond (AKA Patriot bond) for qualified education expenses (i.e. paying for college), you can exclude the interest from income on IRS Form 8815. Below is a link to the article and video we created for this tax form, as a reference. IRS Form 8815, Exclusion of Interest From Series EE and I U.S. Savings Bonds Issued After 1989 Article: www.teachmepersonalfinance.com/irs-form-8815-instructions/ Video: kzbin.info/www/bejne/oXekaYBmgNxlq9k

[@bryanoperezmartinez9087]

I received this form in the last week or so from my HYSA account with raisin/savebetter. The money is kept in a custodian bank listed as: Lewis & Clark Bank As Custodian c/o Raisin Solutions US LLC 1411 Broadway New York NY 10018 I live in Michigan, however, and noticed that boxes 15, 16, and 17 and are all blank. Which state would go under box 15? The custodian bank state or my state of residence to whom I will pay state income taxes (ie., Michigan)? Thanks for your help!

[@teachmepersonalfinance]

Generally, because this is an IRS form, the IRS doesn't mandate whether or not state tax information is reported on information returns. According to IRS Publication 1220, state tax information is included for the convenience of filers. So if you're a Michigan resident, I would report this on your Michigan income tax return. I highly doubt that the state of New York would expect you to pay NY taxes simply because your financial institution's headquarters are in New York.

[@Abel_Girma91]

I filed before receiving my 1099 inc? The total amount is $15. Will I still receive my original refund? Will IRS just automatically adjust my refund?

[@teachmepersonalfinance]

I cannot say with certainty what the IRS will, or will not do. Generally, the IRS may accept the tax return during this tax season and process it normally. If there is a large enough discrepancy (I cannot say whether $15 reaches that threshold, but I don't think so), then the IRS may eventually notify you via letter and send you a bill for the adjusted tax due. You could look into filing an amended tax return (after tax season is over), but I probably think that the cost of hiring someone to amend your tax return may not be worth it. If you decide to talk to someone after tax season and find out differently, please feel free to add to this comment!

[@Abel_Girma91]

​@@teachmepersonalfinance I received 846 code on transcript stating refund issue. So I am assuming not filing 1099 didn't effect getting my return. Thanks again

[@londonwoods9947]

Hey what happened if a person did extemp the whole year from job and someone this pop up with a dependent and they do not have not interested incime from no bank or anyone

[@londonwoods9947]

I do taxes each year never ask this because I do not have any interest income

[@teachmepersonalfinance]

@@londonwoods9947 I don't think I can understand your question. Can you reframe the question so I can think about how to answer it?

[@londonwoods9947]

​@@teachmepersonalfinance I was e-file my taxes in that question pop up about int from I never received one I said no in my federal refund drop I said no because I never had a interest income from and never did one .I is it asking me on tax software if I never participated in the interests income I'm going to call the IRS on Tuesday because I'm confused I always e-file this question I always say no but this time of in particularly of me filling the part was filled out on the new tax software I'm using free tax USA I never seen before

[@teachmepersonalfinance]

@@londonwoods9947 This does not make anything more clear. I'm glad that you're going to call the IRS on Tuesday, though. They should be able to help guide you through your situation.

[@Adamm0896]

Hello, Like another user. There's a 1099-INT I received from Chase ($225 Checking Account offer bonus), with a total amount of $225 just in Box 1. I forgot to included this on my initial return and am now worried/confused on what to do as a next step.

[@teachmepersonalfinance]

Generally, most tax professionals advise people to wait until after tax filing season to file an amended tax return (IRS Form 1040-X) to report the additional income, then pay tax on it. You could do this. Another option would be to wait until the IRS examines your tax return, recalculates your tax liability with the additional income, and sends you a bill. You might pay more in interest, because this probably wouldn't happen until after 2024. What I might suggest is to talk to a tax professional (after tax season) to see whether they think the additional cost of having them do the amended tax return would be worthwhile, then getting their opinion on what the next step should look like.

[@khatran1153]

I have received the 1099-INT. It has three names on it. Who is responsible to pay for the interest income? When I file my tax online, it does not really have an option to put multiple names on that form. I am willing to pay 100% of it, but I wanted to make sure that the IRS knows that and does not audit the other two people if they do not include it.

[@teachmepersonalfinance]

I'm not sure I've heard of a Form 1099-INT with multiple names. First, I would check the taxpayer ID number or SSN. That number will probably be aligned with the person who needs to pay the taxes.

[@khatran1153]

@@teachmepersonalfinance Thank you. There is only one associated TIN #, so I suppose that whoever SSN is listed there will be paying that interest income then. What about other people in the account? - Do we need to report this as well, so just the person with the listed SSN? thank you.

[@teachmepersonalfinance]

@@khatran1153 I'm not sure about the other people on the account, or why they would be listed on someone else's Form 1099. It would seem that if the person whose TIN appears on the form actually reports the income, then there wouldn't be a need for the other folks, whose TIN do not appear, to report that income as well. However, I cannot say this with certainty.

[@whiteknighttemplar1396]

I opened a CD in Nov 2023 and it matures in 7 months at June 2024. I got a 1099-int from my bank for Dec 2023 just one month. I didn't get any money during that month. I just let the interest accrue until maturity on June 2024 then pay it next year. So why did I get a 1099-int for Dec 2023 just one month? Shouldn't I just received a 1099-int next year for this years CD that matures in June 2024? Why should I declare one month interest when I'm not taking any interest money until the CD matures June 2024? I'm confused why the bank reported Dec 2023 as interest? I didn't receive any income off of it?

[@teachmepersonalfinance]

Your bank probably reported the interest income in the year that it was accrued. Since you accrued one month of interest income in 2023, they reported one month of interest. For 2024, they should report 6 months of interest, since they already reported the 1 month for 2023. Interest income generally is considered taxable income in the year that it was accrued, not necessarily when received.

[@invisiblesun6595]

Guess many a people will be getting these thanks to those T-bill investments🤣