What is Form 1099-INT?
Interest is taxable income. The Form 1099-INT shows how much interest a person earned from an institution in a tax year. The IRS requires brokerage firms, banks, mutual funds and other financial institutions to file Form 1099s on interest they pay during the year (the minimum interest paid to trigger a Form 1099-INT is $10).
How Does Form 1099-INT Work?
Let's say that John Doe has a savings account at Bank XYZ. The bank account pays him interest of $200 per year. The bank creates and sends a Form 1099-INT to John (and the IRS) reflecting his $200 of interest income. John uses that information to report that income on his IRS Form 1040 at the end of the tax year.
Why Does Form 1099-INT Matter?
Form 1099-INT is an IRS form used to report interest income.