What Form 1099-INT (2024) Is For
IRS Form 1099-INT (2024) reports interest income received during the 2024 tax year. Financial institutions such as banks, credit unions, and mutual funds issue this form to individuals who earned at least $10 in interest payments during the year. The form also reports tax-exempt interest and other details needed to complete a federal income tax return.
Taxpayers use Form 1099-INT to report both taxable interest income and tax-exempt interest from savings accounts, certificates of deposit, and Treasury obligations. Financial institutions must send copies to both the taxpayer and the Internal Revenue Service by January 31, 2025. The form ensures that all interest earned, including that from municipal bonds, Treasury bills, and other regulated investment companies, is accurately reported as part of gross income.
When You’d Use Form 1099-INT
Taxpayers use Form 1099-INT when filing their federal income tax return to report interest payments and other interest income received during the year. It applies to those who receive interest income reported from multiple accounts, bank deposits, or savings bonds. Anyone who must pay income tax on interest earned, including income from municipal bonds, private activity bonds, and treasury notes, should include this form in their filing.
If an error is found or a corrected form is issued, taxpayers may need to file Form 1040-X to amend the tax return. Those who did not receive a 1099 INT but earned interest must still report it. Failing to include all interest received, especially from foreign tax paid, or entering amounts on more than one form, can result in penalties or an IRS notice.
For complete details on reporting, withholdings, and tax filings, see our guide for Information Returns & Reporting Forms.
Key Rules or Details for 2024
Financial institutions must issue Form 1099-INT if $10 or more in interest income was paid in 2024. If total taxable interest income and dividends exceed $1,500, the taxpayer must attach Schedule B to their federal income tax return. Interest from treasury obligations is taxable at the federal level but often exempt from state income tax. In contrast, tax-exempt bond and specified private activity bond interest must still be reported, even if exempt.
Taxpayers may claim a credit for foreign tax paid or report foreign tax paid entered amounts if interest was earned from a foreign financial institution. Investment expenses, such as bond premiums or markdowns, can adjust taxable income. Under the FATCA filing requirement rules, taxpayers with accounts in a foreign country are required to report them. These details ensure accurate reporting of all gross income, including interest earned from mutual funds, treasury bills, and other regulated investment companies.
Step-by-Step (High Level)
Taxpayers can follow these steps to properly handle Form 1099-INT.
- Gather all 1099-INT forms issued by each financial institution.
- Review each form to verify payer information, the total interest paid, and whether any tax-exempt interest or backup withholding is listed.
- Add the amounts from all forms to calculate the total taxable interest income and tax-exempt interest.
- Determine whether Schedule B is required based on the $1,500 threshold.
- Enter taxable interest on Form 1040, line 2b, and tax-exempt interest on line 2a.
- Include backup withholding amounts as a credit toward the total tax owed.
- Retain all forms and statements for at least three years to support the filing.
This process applies to taxpayers who receive interest income from savings bonds, mutual funds, treasury bonds, treasury notes, and other debt instruments. It also covers income received from community redevelopment agencies, life insurance companies, and utility services authorities.
Common Mistakes and How to Avoid Them
Taxpayers often make small but costly mistakes when reporting interest income. Awareness of these issues can help prevent delays, underreporting, and IRS notices.
- Failing to report interest under $10: Report all interest income using bank and brokerage statements, even if you do not receive Form 1099-INT.
- Mixing taxable and tax-exempt interest: Report taxable and tax-exempt amounts separately to ensure accurate calculations and proper tax treatment.
- Omitting private activity bond or exempt-interest dividends: Report private activity bond interest and exempt-interest mutual fund dividends as required, even when federally tax-exempt.
- Forgetting early withdrawal penalties: Deduct CD early withdrawal penalties as an adjustment on Schedule 1 when eligible.
- Reporting incorrect totals from multiple accounts: Reconcile totals across all accounts and statements to prevent mismatches that can trigger IRS notices.
Reviewing all Forms 1099-INT, confirming totals across accounts, and ensuring accurate identification information helps maintain compliance and prevent costly filing errors.
Learn more about how to avoid business tax problems in our guide on How to File and Avoid Penalties.
What Happens After You File
After the taxpayer files their tax return, the IRS matches all interest income reported on Form 1099-INT with data received from financial institutions. If the amounts align, no further action is needed. If discrepancies appear—such as unreported interest payments, exempt interest, or misreporting of early withdrawal penalties—the IRS may issue a CP2000 notice proposing changes to taxable income.
Interest income can affect both federal and state income tax liability, particularly if taxable bonds, private activity bonds, or tax-exempt bonds are involved. Some interest, like that from specified private activity bonds, may be subject to the alternative minimum tax. Taxpayers should keep all forms and documentation for at least three years to verify reporting payments, eligible expenditures, and income reported from community redevelopment agencies, life insurance companies, or utility services authorities.
FAQs
What does IRS Form 1099-INT (2024) report?
IRS Form 1099-INT (2024) reports all interest income received from financial institutions, including banks, credit unions, and mutual funds. It shows taxable interest, tax-exempt interest, and foreign tax paid. Taxpayers must include all interest income reported when filing a federal income tax return for the 2024 tax year.
How do taxpayers report taxable and tax-exempt interest?
Taxpayers must report taxable interest income from savings accounts, treasury bonds, and money market funds on Form 1040. Tax-exempt interest, such as from municipal bonds or a tax-exempt bond, must also be included even if it does not increase taxable income or federal income tax owed.
What is private activity bond interest, and how is it taxed?
Private activity bond interest and specified private activity bonds are generally exempt from regular income tax but may be subject to the alternative minimum tax. Taxpayers must include this interest income on Form 1099 INT, identifying any tax credit bond CUSIP or tax-exempt bond issued.
Can taxpayers claim foreign tax paid on interest income?
Yes, taxpayers who receive interest income from a foreign financial institution or foreign country may claim a credit for foreign tax paid. They must report the amount of foreign tax paid on their federal income tax return to reduce their overall income tax liability.
What if a taxpayer has multiple accounts with interest that has been earned?
When a taxpayer receives interest payments from multiple accounts, every Form 1099-INT issued must be included on the tax return. All interest paid, exempt interest dividends, and investment expenses should be totaled to calculate gross income and ensure accurate reporting of taxable interest income.
For more resources on filing or understanding prior-year IRS forms, visit our Form Summaries and Guides Library or see our IRS assistance guide.
