Form 1099-INT 2022 Tax Year Checklist
Purpose
Form 1099-INT reports taxable and tax-exempt interest income paid during the 2022 calendar year. The 2022 revision incorporates clarified premium amortization reporting requirements for covered securities under Treasury Regulations and expanded guidance on market discount election notifications, reflecting post-TCJA bond reporting standards.
Filing Requirements
File Form 1099-INT for each person to whom you paid amounts reportable in boxes 1, 3, or 8 of at least $10, or at least $600 of interest paid in the course of your trade or business. You must also file if you withheld and paid any foreign tax on interest, or if you withheld and did not refund any federal income tax under backup withholding rules, regardless of the payment amount.
Report only interest payments made in the course of your trade or business, including federal, state, and local government agencies and nonprofit activities.
Completion Steps
Step 1: Verify Taxpayer Identification Numbers
Enter the complete payer TIN and recipient TIN on all copies filed with the IRS. For copies furnished to recipients (Copy B), you may truncate the recipient’s TIN to show only the last four digits for privacy protection. Cross-reference complete TINs with IRS records to prevent backup withholding notifications. Payer TINs may never be truncated on any form. Ensure TIN accuracy to avoid IRS mismatch notices and backup withholding requirements.
Step 2: Report Taxable Interest in Box 1
Enter all taxable interest of $10 or more not included in Box 3. Include interest credited to accounts by savings institutions, credit unions, cooperative banks, interest on bank deposits, accumulated dividends from life insurance companies, and interest on registered debt instruments. For covered securities acquired at a premium where the recipient did not notify you in writing to waive section 171 amortization, you may report either net interest (gross interest minus premium amortization) or report gross amounts separately in Box 1 and Box 11. Do not include tax-free covenant bond interest or money market fund dividends in this box.
Step 3: Complete Box 2 for Early Withdrawal Penalties
Enter the total interest or principal forfeited due to early withdrawal of time deposits, such as certificates of deposit. Do not reduce the Box 1 amount by this penalty amount. Recipients claim this penalty as an adjustment to income on Schedule 1 (Form 1040 or 1040-SR), Part II, line 17 or 18, which reduces their adjusted gross income. This is an above-the-line deduction that does not require itemizing.
Step 4: Report U.S. Government Obligations in Box 3
Enter interest earned on U.S. Savings Bonds, Treasury bills, Treasury notes, and Treasury bonds. Do not include this amount in Box 1. This interest is generally exempt from state and local income taxes. For covered securities acquired at a premium, see Box 12 for premium amortization reporting. If you redeem U.S. obligations, enter your name, address, and TIN on the form, not those of the U.S. Treasury Department or Bureau of the Fiscal Service.
Step 5: Report Backup Withholding in Box 4
Enter any federal income tax withheld under backup withholding rules. The backup withholding rate for 2022 is 24 percent. Backup withholding applies when recipients fail to provide their TIN, give an incorrect TIN, or are notified by the IRS that they are subject to backup withholding. Recipients report this amount as federal income tax withheld on their tax return and may claim it as a credit against their tax liability.
Step 6: Enter REMIC Investment Expenses in Box 5
For single-class REMICs only, report the recipient’s allocable share of investment expenses. This amount is already included in the Box 1 total and is reported for informational purposes only. Recipients cannot deduct this amount. The Tax Cuts and Jobs Act suspended miscellaneous itemized deductions subject to the 2 percent floor through 2025, making these expenses non-deductible for tax years 2018 through 2025.
Step 7: Report Foreign Tax Information in Boxes 6 and 7
Enter any foreign tax paid on interest in Box 6, reported in U.S. dollars. In Box 7, identify the name of the foreign country or U.S. possession for which the tax was paid. Recipients may claim the foreign tax as either a tax credit or an itemized deduction on their Form 1040 or 1040-SR. Claiming the credit generally provides better tax benefits than claiming the deduction.
Step 8: Complete Tax-Exempt Interest Reporting in Boxes 8 and 9
Report tax-exempt interest of $10 or more in Box 8, including interest from obligations issued by states, the District of Columbia, U.S. possessions, Indian tribal governments, and their political subdivisions. Include specified private activity bond interest in both Box 8 and Box 9. Private activity bond interest may be subject to the alternative minimum tax. For tax-exempt covered securities acquired at a premium, apply premium amortization rules and see Box 13 for reporting requirements.
Step 9: Report Market Discount in Box 10
For covered securities acquired with a market discount, enter the accrued market discount if the recipient made a written section 1278(b) election and notified you accordingly. Use the constant yield method described in section 1276(b)(2) to calculate accruals unless the recipient specifically notified you otherwise. This reporting requirement applies to covered securities acquired on or after January 1, 2015. For covered securities with original issue discount, report market discount on Form 1099-OID instead.
Step 10: Complete Bond Premium Amortization in Boxes 11, 12, and 13
Report bond premium amortization for covered securities in the appropriate box based on obligation type. Use Box 11 for taxable covered securities other than U.S. Treasury obligations, Box 12 for U.S. Treasury covered securities, and Box 13 for tax-exempt covered securities. Report the premium amortization allocable to interest payments during the year unless the holder notified you in writing that they elected not to amortize the bond premium under section 171. If you reported net interest amounts in Boxes 1, 3, 8, or 9, leave the corresponding premium box blank.
Step 11: Enter CUSIP Numbers in Box 14
Provide the CUSIP number for tax-exempt bonds or tax credit bonds reported on the form. If reporting interest or credits for a single bond, enter that bond’s CUSIP number. If reporting aggregate amounts for multiple bonds or accounts, enter “Various” in this box. Leave blank if no CUSIP number was issued. For recipients claiming tax credits from clean renewable energy bonds, new clean renewable energy bonds, qualified energy conservation bonds, qualified zone academy bonds, qualified school construction bonds, or Build America bonds, reference Form 8912 for credit calculation and reporting.
Step 12: Report Tax Credit Bond Amounts in Box 1
If you are reporting tax credits from tax credit bonds, include the credit amount in Box 1. These credits are treated as interest income and are paid on credit allowance dates: March 15, June 15, September 15, and December 15, plus the last day the bond is outstanding. For bonds issued during the three months ending on a credit allowance date, or for bonds redeemed or maturing, prorate the credit based on the portion of the three months during which the bond was outstanding. Recipients claim these credits on Form 8912.
Step 13: Complete State Tax Information in Boxes 15 Through 17
If you participate in the Combined Federal/State Filing Program or your state requires paper copies, use these boxes to report state tax information for up to two states. Enter the two-letter state abbreviation in Box 15, the payer’s state identification number in Box 16, and any state income tax withheld in Box 17. Keep information for each state separated by the form’s internal division. Provide Copy 1 to state tax departments and Copy 2 to recipients for state tax return filing.
Step 14: File Copy A with the IRS and Distribute Copies to Recipients
Submit Copy A to the IRS with Form 1096 as a transmittal cover sheet if filing paper forms. Copy A must be printed on official IRS scannable forms ordered through the IRS or authorized vendors. Downloaded forms from the IRS website are not scannable and may result in processing delays or penalties. Furnish Copy B to recipients by January 31 of the year following the tax year. Retain Copy C for your records. If filing electronically, Form 1096 is not required.
Step 15: Verify Account Numbers and FATCA Filing Requirements
Include an account number if you maintain multiple accounts for a recipient and are filing more than one Form 1099-INT for that person. Account numbers are also required when checking the FATCA filing requirement box. Check the FATCA filing requirement box if you are a U.S. payer reporting as part of satisfying chapter 4 requirements or if you are a foreign financial institution reporting payments to a U.S. account under applicable elections. This helps the IRS track foreign account tax compliance.
Key 2022 Reporting Updates
Covered security premium amortization rules finalized after the Tax Cuts and Jobs Act apply throughout 2022. Payers must determine whether to report gross or net amounts based on the recipient’s written election status under Regulations section 1.6045-1(n)(5). Recipients must provide written notification by December 31, 2022, if they wish to waive premium amortization.
Market discount reporting clarifications for securities acquired on or after January 1, 2015, remain in effect for the 2022 tax year. Unless recipients notify payers otherwise, use the constant yield method to calculate accrued market discount. Recipient notification of section 1278(b) elections is mandatory and applies retroactively to all qualifying covered securities.
Bond credit allowance dates remain March 15, June 15, September 15, and December 15 for qualifying tax credit bonds. Credits from these bonds must be reported in Box 1 as taxable interest income, with recipients claiming the actual credit on Form 8912.
Form Procurement and Scanning Requirements
Official scannable Copy A forms must be ordered through the IRS website at www.irs.gov/orderforms or by calling 1-800-TAX-FORM. The official printed version of Copy A is scannable and meets IRS processing requirements. Forms downloaded from the IRS website as PDFs are not scannable and cannot be filed with the IRS. Filing non-scannable forms may result in processing delays and potential penalties under information return filing requirements.
Copies B, C, 1, and 2 may be downloaded from the IRS website and printed for distribution to recipients and record retention. These copies do not require special scanning capabilities. Many tax preparation software programs produce acceptable substitute statements for recipients that meet IRS requirements outlined in the General Instructions for Certain Information Returns.
Important Reminders
Form 1099-INT and its instructions are continuous-use documents that are updated as needed, rather than being updated annually. Always verify you are using the most current version available at www.irs.gov/Form1099INT. Consult the current General Instructions for Certain Information Returns for comprehensive guidance on filing requirements, electronic reporting options, correction procedures, statement furnishing requirements, taxpayer identification number matching, backup withholding procedures, penalty provisions, and chapter 4 definitions.
Maintain accurate records of all interest payments and recipient information throughout the tax year to ensure timely and accurate reporting. Implement procedures to obtain correct TINs from all recipients before making reportable payments to minimize backup withholding obligations and IRS mismatch notices. Consider electronic filing options if you file 10 or more information returns, as electronic filing may be required and generally results in faster processing and fewer errors.
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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.
