1099 Forms Breakdown of 2023 IRS Form 1099-INT Instructions

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What is the purpose of Form 1099-INT?

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.

Box by Box Form 1099-INT Instructions for 2023 Tax Year

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.

Sections For Entering Payer Information

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Complete the Payer Details section. This includes:

  • Name
  • Address
  • Contact phone number
  • Tax Identification Number (TIN)

Sections For Entering Recipient Information

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Complete the Recipient Details section. This includes:

  • TIN
  • Name
  • Street Address
  • City, State, Zip

Check Box for FATCA filing requirement

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Select this box if the following conditions apply to you:

  • If you are a payer based in the United States and have to comply with Chapter 4 account reporting as per section 1.1471-4(d)(2)(iii)(A).
  • If you are an FFI (Foreign Financial Institution) reporting payments to a U.S. account following an election outlined in Regulations section 1.1471-4(d)(5)(i)(A).

Second TIN Notification Checkbox

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.

Interest Information Boxes

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Box 1: Interest Income

Enter taxable interest not included in box 3. Include:

  • Amounts of $10 or more that are paid or credited to the person's account
  • Interest of $600 or more paid in the course of business or trade under certain conditions
  • Include any accrued qualified stated interest on bonds sold.

Do not include:

  • Interest on tax-free covenant bonds or dividends from money market funds
  • Any descriptions for interest amounts

Box 2: Early Withdrawal Penalty

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.

Box 3: Interest on U.S. Savings Bonds and Treasury Obligations

Enter interest on U.S. Savings Bonds, Treasury bills, Treasury notes, and Treasury bonds.

Do not include this amount in Box 1.

Box 4: Federal Income Tax Withheld

Enter backup withholding. For more information on backup withholding, see General Instructions.

Box 5: Investment Expenses

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.

Box 6: Foreign Tax Paid

Enter any foreign tax paid on interest (in US dollars).

Box 7: Foreign Country or U.S. Possession

If applicable, enter the name of the foreign country or US possession for which foreign tax was paid and reported in box 6.

Box 8: Tax-Exempt Interest

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.

Box 9: Specified Private Activity Bond Interest

Enter interest of $10 or more from specified private activity bonds.

Box 10: Market Discount

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.

Box 11: Bond Premium

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.

Box 12: Bond Premium on U.S. Treasury Obligations

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.

Box 13: Bond Premium on Tax-Exempt Bond

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.

Box 14: Tax-Exempt and Tax Credit Bond CUSIP No.

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.

Boxes 15–17: State Information

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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.

  • Box 15 - State
  • Box 16 - State identification number
  • Box 17 - State tax withheld

Need help with completing Form 1099-INT? Find the detailed instructions for Form 1099-INT here.

What are the different Form 1099 Copies?

Each Form 1099 has five different copies with their specific purpose:

Copy A

IRS copy for paper filing.

Copy 1

Filed with the State Tax Department.

Copy B

Recipient copy.

Copy 2

Recipient state copy used for state income tax reporting.

Copy C

Payer's copy for their records.

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