1099 Forms › Breakdown of 2023 IRS Form 1099-INT Instructions
The IRS 1099-INT reports $10 or more interest payments in Box 1 (Interest Income). This Form should also be submitted if the employer withheld and paid any foreign tax on interest or withheld federal income tax payments under backup withholding rules without refunding these payments.
The Form 1099 Series includes numerous forms to report various payments to the IRS. In addition, Form 1099-INT has specific requirements for completion and filing with the IRS. Below are the Form 1099-INT instructions for the 2023 tax year.
Complete the Payer Details section. This includes:
Complete the Recipient Details section. This includes:
Select this box if the following conditions apply to you:
If you have been notified twice within three tax years that the recipient provided an incorrect TIN for filing Form 1099-INT, an “X” can be marked in this box. By checking this box, the IRS will cease sending you notifications for this account. Continue recording the interest payments made to the recipient and state if you withheld any taxes from the recipient.
Enter taxable interest not included in box 3. Include:
Do not include:
Enter any interest or principal forfeited due to early withdrawal of time deposits deductible from the recipient's gross income.
Do not reduce the amount reported in box 1 by the amount of the forfeiture.
Refer to the requirements of Form 1099-INT for more details.
Enter interest on U.S. Savings Bonds, Treasury bills, Treasury notes, and Treasury bonds.
Do not include this amount in Box 1.
Enter backup withholding. For more information on backup withholding, see General Instructions.
This is only used for single-class REMICs. If applicable, enter the regular interest holder's pro rata share of investment expenses.
Note: This amount is not deductible.
Enter any foreign tax paid on interest (in US dollars).
If applicable, enter the name of the foreign country or US possession for which foreign tax was paid and reported in box 6.
Enter tax-exempt interest that is not OID of $10 or more.
Include specified private activity bond interest in Box 9 and the total for Box 8.
Enter interest of $10 or more from specified private activity bonds.
For a covered security acquired with market discount. Enter the market discount accrued on the debt instrument for $10 or more during the tax year.
Note: Accruals of market discount should be reported on Form 1099-OID instead of Form 1099-INT.
For taxable covered security acquired at a premium. Enter the amount of bond premium amortization allocable to the interest paid during the tax year. Do not include if you were notified in writing that the holder did not want to amortize the bond premium under section 171.
Note: If required to report bond premium amortization and a net amount of interest was reported in Box 1, then this box should be left blank.
Any U.S. Treasury obligation is a covered security acquired at a premium. Enter the amount paid during the fiscal year unless a written notification was received that the holder chose not to amortize the bond premium under section 171.
Note: If required to report bond premium amortization and a net amount of interest was reported in Box 3, then this box should be left blank.
For tax-exempt covered security acquired at a premium. Enter the amount of bond premium amortization allocable to the interest paid during the tax year.
Note: If a net amount of interest was reported in box 8 or 9, then this box should be left blank.
For single bonds or accounts containing a single bond. Enter the CUSIP number of the tax-exempt bond for which tax-exempt interest is reported in Box 8 or the tax credit bond for which a tax credit or taxable interest, as applicable, is reported in Box 1.
These boxes can be used for payers that participate in the Combined Federal/State Filing Program (CF/SF) or by those required to submit paper copies to a state agency.
Need help with completing Form 1099-INT? Find the detailed instructions for Form 1099-INT here.
Each Form 1099 has five different copies with their specific purpose:
IRS copy for paper filing.
Filed with the State Tax Department.
Recipient state copy used for state income tax reporting.
Payer's copy for their records.
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BoomTax and its affiliates do not provide tax, legal, or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal, or accounting advice. You should consult your own tax, legal, and accounting advisors prior to engaging in any transaction.