Form 1099-INT (2014) Checklist
Purpose and Filing Requirements
Form 1099-INT reports interest income paid to recipients during calendar year 2014. Payers must furnish Copy B to recipients by February 2, 2015, which provides taxpayers with the information needed to complete their individual tax returns.
Copy A must be filed with the IRS by March 2, 2015, for paper submissions or March 31, 2015, for electronic filing. The 2014 form incorporates reporting rules for tax credit bonds where credit allowance dates fall on March 15, June 15, September 15, and December 15, 2014.
Recipient Identification and Privacy
You must verify the recipient's complete name, address, and taxpayer identification number, which includes Social Security Numbers, Individual Taxpayer Identification Numbers, or Adoption Taxpayer Identification Numbers. Truncation of the recipient's TIN on Copy B furnished to the recipient is optional, not mandatory.
Payers may choose to display only the last four digits on the recipient copy for privacy protection, but this practice remains voluntary under IRS regulations. You must report the full TIN to the IRS on Copy A regardless of truncation choices made for recipient copies.
Payer Information Requirements
Confirm your federal identification number and complete address before filing any Form 1099-INT with the IRS. Your federal identification number serves as the primary identifier for all information returns you submit during the tax year.
Include your routing transit number if you choose to participate in the program for direct deposit of refunds. This routing transit number field remains optional for all filers, and you may leave it blank if you do not wish to participate in the direct deposit program.
Box 1: Interest Income Reporting
Report all taxable interest paid during the 2014 calendar year in Box 1. Include the gross amount of credits from tax credit bonds treated as paid on 2014 credit allowance dates, which consist of clean renewable energy bonds, new clean renewable energy bonds, qualified energy conservation bonds, qualified zone academy bonds, and Build America bonds. These credits are treated as interest income to the bondholder and must be included in the Box 1 total.
Box 2: Early Withdrawal Penalties
Enter interest or principal forfeited from premature withdrawal of time savings deposits in Box 2. Recipients may deduct this amount above-the-line on Form 1040 when calculating adjusted gross income, which reduces taxable income before applying standard or itemized deductions.
Do not reduce the Box 1 amount by the early withdrawal penalty, as recipients report both figures separately on their tax returns. The Box 1 amount reflects the gross interest paid, while Box 2 shows the penalty that offsets this income through an adjustment to income.
Box 3: U.S. Government Obligations
Report U.S. Savings Bond interest, Treasury bill interest, Treasury bond interest, and Treasury note interest separately in Box 3. Do not include these amounts in Box 1, as they receive different tax treatment and may qualify for state and local tax exemptions under federal law.
Backup Withholding Requirements
Report backup withholding amounts in Box 4 when recipients fail to provide correct taxpayer identification numbers. The backup withholding rate for 2014 stands at 28 percent of reportable payments.
Recipients include this amount as federal income tax withheld when filing their 2014 Form 1040. Backup withholding applies to amounts in Box 1 reduced by Box 2, Box 3, and Box 8 when TIN requirements are not met.
Investment Expenses and Foreign Tax
Enter investment expenses allocable to single-class Real Estate Mortgage Investment Conduits in Box 5 if applicable to your reporting situation. Include this amount in the Box 1 total so recipients can properly report their net interest income and claim eligible deductions on Schedule A of Form 1040.
Report foreign tax paid in Box 6 and identify the country or U.S. possession in Box 7 to allow recipients to claim deductions or credits on their 2014 returns. Recipients may use the foreign tax amount to calculate either a foreign tax credit or an itemized deduction on their individual tax returns.
Tax-Exempt Interest and Private Activity Bonds
Report tax-exempt interest in Box 8 without including these amounts in Box 1, as these categories receive different tax treatment under federal law. Recipients report this amount on line 8b of Form 1040 or Form 1040A, despite the interest not generating federal tax liability.
Separate the amount subject to alternative minimum tax in Box 9, which must also be included in the Box 8 total for proper recipient reporting. This separate reporting allows taxpayers to determine whether they owe alternative minimum tax based on their specified private activity bond interest income.
Covered Securities: Market Discount and Premium
For covered securities acquired with market discount, report accrued market discount in Box 10 when recipients notify you in writing of section 1278(b) elections. Report premium amortization in Box 11 for covered securities unless recipients provide written notice under Regulations section 1.6045-1(n)(5) declining amortization under section 171.
When Box 11 remains blank, the amounts in Box 1, 3, 8, or 9 reflect net interest after premium amortization has been applied. Payers may choose to report either gross interest with separate premium amortization or net interest figures, depending on their reporting preference and recipient elections.
Tax-Exempt Bond Identification
Enter tax-exempt bond CUSIP numbers in Box 12 when issued for bonds generating the interest reported in Box 8. If no CUSIP number was issued for the tax-exempt bond, leave Box 12 blank on the form.
Complete state tax information in Boxes 13 through 15 for payers participating in Combined Federal/State Filing Programs or when state requirements mandate paper filing. These state information boxes allow you to report payments for up to two states by separating the information with the dash line provided on the form.
Nominee Reporting Obligations
When your form includes amounts belonging to another person, you must complete a separate Form 1099-INT for each other owner. Show the income allocable to each owner and list yourself as the payer on these nominee forms.
File Copy A with Form 1096 with the Internal Revenue Service Center for your area to satisfy federal reporting requirements. Furnish Copy B to each beneficial owner showing their allocable portion of the interest income so they can accurately report the amounts on their individual tax returns.
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This checklist is for educational purposes only and does not constitute tax or legal advice. Always review official IRS instructions and consult a qualified professional for guidance.
