1099-INT vs 1099-B: A Clear Guide for Payers

Form 1099-INT and Form 1099-B may confuse payers because the same bond or account can generate coupon interest and sales/redemption proceeds in the same year. Add look-alikes accrued interest on bond trades, T-bills and zero-coupon instruments, and money-market fund payouts and the lines blur. This guide spells out who files which form and when, the key thresholds, and the edge cases that trigger IRS mismatches and penalties.

What Is Form 1099-INT?

Interest income doesn’t make headlines, but it quietly builds up on deposits, loans, and late charges. Form 1099-INT reports interest you pay or credit in the course of your trade or business. Banks, credit unions, crowdfunding platforms, and small businesses file it when they pay interest, subject to exempt-recipient rules (for example, many corporations are exempt).

What Is Included in Form 1099-INT

Box 1: total taxable interest paid (other than Box 3)
Box 3: interest from U.S. Savings Bonds and Treasury obligations (federally taxable, often state-exempt)
Box 4: federal income tax withheld (24% backup withholding, if applicable)

When to File Form 1099-INT (Threshold)

You’ll need to file the “interest income” form, i.e., Form 1099-INT, when you:

• Paid at least $10 of amounts reportable in Boxes 1, 3, or 8
• Paid at least $600 of certain trade-or-business interest described under Box 1
• Withheld and paid any foreign tax on interest (regardless of the amount)
• Withheld (and didn’t refund) any federal income tax (under backup withholding rules) no matter the amount
• Pay interest on a state or federal income tax refund (a type of ‘other trade-or-business interest’ reportable in Box 1) this is reported when total such interest is at least $600

Example: You pay a contractor $750 in late-payment interest across 2025. Payee isn’t exempt, and no backup withholding was applied. As a result, you’ll need to file Form 1099-INT (Box 1), because “other interest” paid in the course of business hits the $600 trigger.

What Is Form 1099-B?

Form 1099-B often unofficially called the stock-sale proceeds form reports proceeds from broker and barter exchange transactions think sales your broker facilitates (stocks, ETFs, mutual funds, bonds, options, commodities, regulated futures) and transactions run through a barter exchange.

Note: For transactions on or after January 1, 2025, brokers generally report digital asset sales on Form 1099-DA rather than 1099-B, with limited exceptions.

Barter Reporting: Barter vs Direct Barter

• If an organized barter exchange facilitates a trade, the exchange files Form 1099-B to report the gross value, except for limited exceptions (for example, exchanges with fewer than 100 transactions in the year, exchanges involving an exempt foreign person, or exchanges where the FMV is under $1).
• (Members generally don’t need to file 1099-NEC for the same exchange transaction.)

When two businesses swap directly without an exchange, there’s no 1099-B, but each party must include the FMV of what they received in income.

What Is Included in Form 1099-B

Box 1d: Gross proceeds from the sale
Box 1e: Cost or other basis (if known)
Box 2: Type of gain or loss (short vs long-term)

When to File Form 1099-B (Threshold)

For Brokers: There’s no dollar minimum brokers generally must report sales on Form 1099-B. Key exceptions include sales to exempt recipients (for example, corporations, charities, IRAs, and government entities) and some precious-metal sales that are below the CFTC’s minimum delivery amounts.

Note: For brokered sales, report gross proceeds in Box 1d and cost or other basis in Box 1e (when required)

For Barter Exchanges: Barter exchanges must file Form 1099-B for member trades, except when the exchange has fewer than 100 transactions for the year, the member is an exempt foreign person, or the fair market value is under $1.

Note: For barter exchange transactions, report the gross amount in Box 13 (Bartering)

Example:

CoolAir LLC and Bella’s Bistro are members of CityTrade Exchange. CoolAir repairs the bistro’s walk-in cooler. The exchange credits CoolAir 1,200 trade dollars (equal to $1,200 FMV). To report this transaction, CityTrade Exchange (the clearinghouse) issues Form 1099-B to CoolAir for $1,200 and files it with the IRS. CoolAir reports $1,200 as income. Neither party issues a 1099-NEC to the other for this exchange-facilitated job.

Comparing Form 1099-INT vs 1099-B

Why Choosing the Right Form Matters

Using the wrong form creates mismatches between what you file and what the IRS expects on the recipient’s return. Reporting a stock sale on 1099-INT misclassifies it as interest, so the IRS doesn’t see proceeds and cost basis on Form 8949/Schedule D, which can trigger follow-up notices and corrections.

Accurate form selection also signals clean operations. Vendors, investors, and partners rely on these statements to close their books. Filing correctly builds trust a subtle but valuable part of compliance.

Payer Compliance Tips

Filing deadlines can sneak up quickly, so here’s a checklist to help you stay compliant when you file any 1099 online:

1. Verify recipient information: Collect Form W-9 and run an IRS TIN match before you pay.
2. Choose the right form: 1099-INT is for interest paid, and 1099-B is for broker or barter exchange sales.
3. Prepare and upload your data in one go: With an e-file provider like 1099Online, you can use a spreadsheet or a secure automated connection and also include different 1099 form types in the same run.
4. Run validation checks before you file: Catch blanks, wrong boxes, and threshold errors, if any. Also, make sure backup withholding is shown in Box 4 when it applies.
5. Know when you must file electronically: If you file ten or more total W-2 and 1099 forms, you must file all of them electronically (as per the 10-form e-file rule).
6. Send copies to recipients on time: For filings in 2026 (TY 2025), send 1099-INT by February 2, 2026, and 1099-B by February 17, 2026.
7. File with the IRS on time: For paper filing, the due date is March 2, 2026, while for electronic filing, the due date is March 31, 2026.
8. Store your records safely: Keep copies of filed information returns for at least 3 years (4 years if backup withholding was imposed). Also, keep related Forms W-9 to support TIN solicitations and any backup withholding.

Real-Life Examples

Let’s put the difference between Form 1099-INT and Form 1099-B into perspective with a few practical cases:

FAQs

1. Is there any minimum amount for Form 1099-B?

Usually no. Brokers must report sales regardless of amount (no de minimis dollar threshold). Barter exchanges have limited exceptions to filing (for example, fewer than 100 transactions in the year, certain exempt foreign persons, or FMV under $1).

2. Does any interest amount below $10 ever get reported?

Yes, payers must report interest amounts even below $10 if any backup withholding or foreign tax was withheld.

3. What if the wrong form is filed?

Submit a CORRECTED return for the wrong one and an ORIGINAL for the right one promptly.

4. Can a recipient get both Form 1099-B and Form 1099-INT in one year?

Yes, interest may appear on 1099-INT and sales on 1099-B in the same year.

5.How does the 10-form e-file rule work?

If a business files 10 or more information returns (W-2 + 1099s), all must be e-filed.

The Bottom Line

Knowing the difference between 1099-INT vs 1099-B keeps filing simple, avoids penalties, and keeps your books clean. Match the form to the source: interest you paid goes on 1099-INT, whereas proceeds from a sale or barter exchange go on 1099-B.