What is 1099-INT form?

A 1099-INT form is used to report interest income to the Internal Revenue Service (IRS). The form is typically filed by entities or individuals who pay interest totaling $10 or more during the year. The form is also used to report other tax items related to interest income, such as federal tax withheld, early withdrawal penalties, and investment expenses.

Also, include interest of $600 or more paid in the course of your trade or business not meeting the above criteria, such as interest on delayed death benefits paid by a life insurance company, interest received with damages, interest on a state or federal income tax refund, or interest attributable to certain notional principal contracts with nonperiodic payments.

Who must file 1099-INT form?

Use form 1099-INT to report interest income. Interest income includes the following payment types

• Anyone Paying Interest as Part of Their Business: If you are a small business owner or operate any business that pays interest of $10 or more to a client or another business during the tax year, you should issue a 1099-INT.
• Banks and Financial Institutions: These entities often pay interest on savings accounts, certificates of deposit (CDs), and other accounts. If the interest paid to an account holder is $10 or more during the year, they must issue a 1099-INT.
• Corporations and Other Entities: If a corporation, partnership, estate, trust, or other entity pays $10 or more in interest to an individual or another entity, they must issue a 1099-INT.
• Brokers and Investment Firms: These entities may need to issue a 1099-INT for interest paid on bonds or other investment products.

How to eFile 1099-INT form?