Investing Answers Building and Protecting Your Wealth through Education Publisher of The Next Banks That Could Fail
Investing Answers Building and Protecting Your Wealth through Education Publisher of The Next Banks That Could Fail

Form 1099-INT

What it is:

Interest is taxable income. The Form 1099-INT shows how much interest a person earned from an institution in a tax year. The IRS requires brokerage firms, banks, mutual funds and other financial institutions to file Form 1099s on interest they pay during the year (the minimum interest paid to trigger a Form 1099-INT is $10).

How it works (Example):

Let's say that John Doe has a savings account at Bank XYZ. The bank account pays him interest of $200 per year. The bank creates and sends a Form 1099-INT to John (and the IRS) reflecting his $200 of interest income. John uses that information to report that income on his IRS Form 1040 at the end of the tax year.

Why it Matters:

Form 1099-INT is an IRS form used to report interest income.