Before filing your taxes, you must wait for all of your required forms to arrive in the mail. One document you may receive around tax time is a 1099-INT. Keep this form handy with the rest of your tax documents as you need the information to accurately account for your income during the period.
A 1099-INT form summarizes the interest income you’ve received during the year. Interest income is the amount of money you receive on earnings from savings accounts, bonds and certain treasury accounts. The interest you earn on certain types of savings accounts is taxable, just like earned income from a job. The banks where you hold your accounts send these forms at tax time, usually before February 1.
The 1099-INT form shows basic information about you as the account holder, including name, address, and account number. In addition to the interest income earned for the year, it also shows any early withdrawal penalty and federal income tax paid on the earnings. If any of the interest earnings were tax-exempt, meaning that you weren’t required to pay tax on the amount, that figure is also printed on the 1099-INT form.
1099-INT from the State
In some cases, the state may send a 1099-INT form to a taxpayer to account for interest earned on tax refund payments due. For instance, if the taxpayer overpaid his obligation for the year, the state revenue office may pay him interest for the time the office held onto the extra funds. The same is sometimes true for localities -- towns and cities.
It is possible to receive more than one 1099-INT form in one year. For instance, if you have more than one bank savings account earning interest, you receive a form for each of those accounts. If you do not receive all of your 1099-INT forms by February 1, you can sometimes log into your bank accounts to retrieve the forms online. It is common for banks to provide printable 1099-INT forms for retrieval over the Internet.