How to Fill Out Form 1099-INT for the 2026 Tax Year: Step-by-Step Guide

Interest payments are not reported in one place just because they come from the same account. Form 1099-INT, Interest Income, is used to report certain interest payments made during the tax year, and it separates taxable interest, Treasury obligations, tax-exempt interest, backup withholding, foreign tax, bond premium, and market discount into different boxes.

This article explains how to fill out Form 1099-INT for the 2026 tax year, what to check before entering amounts, and where common reporting mistakes usually happen.

When Is Form 1099-INT Required?

Form 1099-INT is usually required when you pay $10 or more in interest that belongs in Box 1, Box 3, or Box 8.

For 2026 returns, the OBBBA threshold increase does not replace the $10 rule for common Form 1099-INT interest. However, the threshold may be $2,000 instead of $10 only for certain interest paid in the course of a trade or business.

You may also need to file Form 1099-INT if foreign tax was paid on interest, federal tax was withheld under backup withholding rules, or you acted as a nominee or middleman.

Backup withholding can require filing even when the interest amount is below the normal reporting threshold.

What to Collect Before Filling Out the Form

Before entering numbers, confirm the payer details, recipient details, and payment records.

You will usually need:

• Payer legal name, address, and TIN
• Recipient legal name, address, and TIN
• Taxable interest paid
• U.S. savings bond or Treasury interest
• Tax-exempt interest
• Early withdrawal penalty, if any
• Federal income tax withheld
• Foreign tax paid and country details
• State withholding details, if applicable
• Account number, if needed

Note: You need to carefully check the recipient name and TIN before filing, as a mismatch can lead to IRS notices or correction work.

Match the Interest Type to the Right Box

Form 1099-INT separates interest by category because tax treatment can differ.

How to Fill Out Form 1099-INT

Step 1: Enter payer and recipient information

Start with the payer’s legal name, address, and TIN. Then add the recipient’s legal name, address, and TIN.

Use the name and TIN combination that matches your records or Form W-9. If the account has more than one name, make sure the first name line matches the TIN shown on the form.

Step 2: Add regular taxable interest

Box 1 is for the regular interest a payer reports to the recipient. This is usually interest from bank accounts, CDs, registered bonds, notes, or other debt securities. Do not use Box 1 if the interest has its own separate box on Form 1099-INT.

Step 3: Add special interest categories

Use Box 2 for an early withdrawal penalty. Do not reduce Box 1 by the penalty amount.

Use Box 3 for U.S. savings bonds and Treasury obligations. Use Box 8 for tax-exempt interest. If specified private activity bond interest applies, report it in Box 9 and include it in Box 8.

Step 4: Report tax withheld, if any

Box 4 is only needed when federal income tax was withheld from the interest. That can happen when the recipient’s TIN is missing, invalid, or flagged by the IRS.

If foreign tax was paid on interest, report the amount in Box 6 in U.S. dollars and enter the country or U.S. territory in Box 7. State information goes in Boxes 15 to 17, including any state tax withheld in Box 17.

Step 5: Add bond-related amounts, if any

Some bond interest may also have market discount or bond premium that must be reported separately.

• Report market discount in Box 10 when it applies.
• For bond premium, use the box that matches the bond type (as detailed in the table below).

Deadlines for Form 1099-INT

For the 2026 tax year, Form 1099-INT deadlines fall in 2027.

January 31 and February 28, 2027, fall on Sundays, so the first two deadlines move to the next business day.

OBBBA Update

The One Big Beautiful Bill Act increased the reporting threshold for some information returns after 2025. For Form 1099-INT, this does not mean the $10 rule is gone.

For 2026 returns, the $10 threshold still applies to most common Form 1099-INT interest, including interest reported in Box 1, Box 3, or Box 8.

The $2,000 threshold applies only in limited cases, mainly interest reported under section 6041, such as certain interest paid in the course of a trade or business.

Before filing, check the type of interest first so you do not apply the $2,000 threshold too broadly.

Common Mistakes to Avoid

• Don’t enter tax-exempt interest into Box 1
• Verify that Treasury interest is reported in Box 3, not Box 1
• Report backup withholding in Box 4
• Do not leave Box 6 blank if foreign tax was paid
• Don’t mistake dividends for interest
• Re-check bond premium/market discount fields and make sure they are reported properly
• Don’t file on paper if you are required to eFile under the 10-return rule, unless you have an approved waiver
• Don’t delay the resolution of missing TINs

Why Fill Out Form 1099-INT Online?

Form 1099-INT can get tricky when one recipient has multiple accounts, bond activity, withholding, or state reporting details. Online filing helps keep those records organized so each amount is entered, reviewed, and filed in the right place.

1099Online helps you handle the full Form 1099-INT workflow, from recipient setup and box-level entry to IRS eFiling, recipient copies, and corrections.

FAQs

1. Who must file Form 1099-INT?

When a payer like a bank, credit union, broker, lender, or any other business that pays interest in the course of a trade or business pays reportable interest during the year, it may need to file Form 1099-INT.

2. What is the Form 1099-INT reporting threshold?

The common threshold is $10 for interest reportable in Box 1, Box 3, or Box 8. For 2026 returns, interest reportable in the course of a trade or business may use a $2,000 threshold.

3. When is Form 1099-INT due for 2026 returns?

The recipient copy should be furnished by February 1, 2027. Paper IRS filing is due March 1, 2027, and eFiling is due March 31, 2027.

4. What is tax-exempt interest on Form 1099-INT?

Box 8 is used to report tax-exempt interest. It may include interest on a qualifying state, local, territorial, tribal, or similar obligation.

5. Can Form 1099-INT be corrected after filing?

Yes. A corrected Form 1099-INT can be filed if recipient details, TINs, amounts, withholding, or box entries were incorrect.