Simplify Form 1099-INT reporting for taxable interest, tax-exempt interest, withholding, and related information. With 1099Online, you get bulk import, real-time TIN match, eFiling, and recipient copy delivery.
Form 1099-INT is one of the most widely filed information returns. If your organization pays or credits reportable interest to recipients during the calendar year and meets reporting requirements, use this form to report it to the IRS.
Each year, payers that credit or distribute reportable interest to recipients must report those amounts to the IRS using Form 1099-INT.
This form captures the recipient's interest activity for the calendar year, from taxable interest and U.S. Treasury earnings to tax-exempt income and any taxes withheld along the way.
The form also reports federal income tax withheld, foreign tax paid on interest income, tax-exempt interest from state and municipal bonds, bond premium amortization, market discount on debt instruments, and specified private activity bond interest.
One important point to note is that the interest is reportable for the year it is paid or credited to the recipient's account, not the year the recipient chooses to withdraw it.
The payer must file Form 1099-INT for each recipient when at least one of the filing conditions applies. Some of the common 1099-INT filers include:
The filing obligation depends on the type of interest, the amount of interest, and whether any withholding occurred. File Form 1099-INT for each recipient when:
Do not file Form 1099-INT if you have to pay interest to any of the following recipients:
Not all interest payments are reportable on 1099-INT. Here are some types of interest that are excluded from Form 1099-INT, regardless of the recipient.
Interest that is tax-deferred inside a qualified account is not reportable on 1099-INT. The reporting obligation begins only when the interest is distributed to the account holder. And it is reported under the applicable retirement-plan reporting rules, typically on Form 1099-R, rather than Form 1099-INT.
The One Big, Beautiful Bill Act (OBBBA) raised the reporting threshold for certain qualifying business payments from $600 to $2,000 under Section 6041. However, this change does not replace the $10 threshold that applies to most interest reported on Form 1099-INT in Boxes 1, 3, and 8. The $2,000 threshold applies only to certain trade-or-business interest payments that fall under Section 6041 rules.
Another important update to keep in mind is that for tax year 2026, IRIS will be replacing FIRE as the only IRS electronic intake system for information returns.
Some debt instruments produce both qualified stated interest and original issue discount (OID). When that happens, payers have two reporting options:
Either approach is acceptable, but the reported amounts must not be duplicated across different forms. You also cannot split the interest and its premium across the two forms.
If you report a qualified stated interest in Box 2 of Form 1099-OID, any bond premium amortization for that security must also go on Form 1099-OID (Box 10), not on Form 1099-INT.
Box 1: Interest Income
Box 1 reports the taxable interest from savings accounts, checking accounts, CDs, money market deposit accounts, and similar sources.
Box 2: Early Withdrawal Penalty
When a recipient cashes out a time deposit, such as a CD, before it matures, the institution charges an early withdrawal penalty, which has to be reported in Box 2. The full interest earned still appears in Box 1 without any reduction.
Box 3: Interest on U.S. Savings Bonds and Treasury Obligations
This box is reserved for interest from U.S. savings bonds, Treasury bills, Treasury notes, and Treasury bonds. This interest is taxable at the federal level but may be exempt from state and local income taxes.
Box 4: Federal Income Tax Withheld
Box 4 is for reporting federal income tax withheld from the recipient's interest payments, if applicable.
Box 5: Investment Expenses
This box applies only to single-class REMICs and reports the regular interest holder's share of investment expenses.
Box 6: Foreign Tax Paid
If foreign tax was paid on the interest income, the amount goes here in U.S. dollars.
Box 7: Foreign Country or U.S. Territory
This box identifies where the foreign tax in Box 6 was paid. It helps the recipient accurately calculate any available foreign tax credit or deduction.
Box 8: Tax-Exempt Interest
The interest from qualifying municipal bonds and similar state or local government obligations is reported in Box 8. Any specified private activity bond interest included here also goes in Box 9.
Box 9: Specified Private Activity Bond Interest
This box captures the portion of the tax-exempt interest in Box 8 attributable to specified private activity bonds. It is a subset of Box 8, not an addition to it.
Box 10: Market Discount
When a recipient buys a covered security at a price below its adjusted issue price, report the discount that accrued during the year on covered securities. But only if it is $10 or more and the recipient has notified the payer that they elected under section 1278(b) to include market discount in income as it accrues.
Box 11: Bond Premium
For taxable covered securities (other than Treasuries) bought at a premium, Box 11 shows how much of that premium was amortized against interest during the year. This box stays blank if the payer already reported a net interest figure in Box 1.
Box 12: Bond Premium on Treasury Obligations
This works the same way as Box 11 but applies specifically to U.S. Treasury securities.
Box 13: Bond Premium on Tax-Exempt Bonds
Box 13 covers premium amortization allocable to interest on tax-exempt covered security acquired at a premium. Leave this box blank if the payer reports tax-exempt interest in Box 8 or 9.
Box 14: Tax-Exempt and Tax Credit Bond CUSIP Number
Box 14 may show the CUSIP number used to identify the tax-exempt bond or tax credit bond associated with the interest reported on the form.
Boxes 15, 16, & 17: State Information
Box 15 identifies the state for which state tax information is being reported. Box 16 reports the payer's state identification number. Box 17 reports the amount of state income tax withheld from the interest payment.
To file Form 1099-INT accurately for the 2026 tax year, have the following details ready before starting the filing and submission process.
Depending on the payments and transactions being reported, collect all the information regarding:
Report interest paid or credited in 2026 before the following due dates:
| Required Action | 2026 TY Deadline |
|---|---|
| Furnish a copy to the recipient | February 1, 2027* |
| Paper file with the IRS | March 1, 2027* |
| eFile with the IRS | March 31, 2027 |
*January 31 and February 28 both fall on Sundays in 2027, so the recipient copy and paper filing deadlines shift to the next business day.
Step 1: Enter Federal and State Details
Enter the required payer and recipient information, interest amounts, withholding, and applicable state details. You can do this step using manual entry or bulk data import. 1099Online supports both options.
Step 2: Validate Your Tax Details
Review names, TINs, addresses, account numbers, interest amounts, and Box selections for accuracy. Run a TIN Match using 1099Online’s Real-Time TIN Match feature.
Step 3: Submit Your Returns
Transmit Form 1099-INT securely to the IRS and applicable state agencies through 1099Online.
Step 4: Distribute Recipient Copies
Provide recipient copies via the available delivery options, which may include email, PDF download, or print-and-mail service.
Yes. The filing threshold for interest reported in Boxes 1, 3, or 8 is $10 or more, so you have to file Form 1099-INT even if the recipient earned exactly $10.
No. The $2,000 threshold applies only to certain qualifying trade-or-business payments reported under Section 6041. Most interest reported on Form 1099-INT is subject to Section 6049, which has the $10 threshold.
Yes. When federal income tax has been withheld under the backup withholding rules, file the form and report it in Box 4 regardless of the interest amount.
No. Since interest on U.S. savings bonds and Treasury obligations is generally exempt from state and local income taxes, it should be reported in Box 3.
Yes. Interest earnings are reportable in the year they are credited to the recipient's account, even if the recipient reinvests the funds or leaves them in the account.
If you file a Form 1099-INT after the deadline, you will have to pay late filing fees starting at $60 per return, which can increase quickly depending on how late the filing is.
Some of the more common errors you can find when filing Form 1099-INT are reporting interest in the wrong Box, omitting tax-exempt interest from Box 8, entering an incorrect TIN, and reporting OID as regular interest when it should be reported on Form 1099-OID.
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