Form 1099-INT lists the interest a bank, credit union, broker or other payer paid you. It often arrives alongside several other forms, and the boxes do not all mean the same thing: some interest is fully taxable, some is exempt from state tax, and some is not federally taxable at all.
This guide explains each box, who sends the form and at what amount, what to do if you did not receive one, and works through the tax on $10,000 of interest. It follows the IRS form instructions and IRS Topic 403.
| Box | What it shows | Tax treatment |
|---|---|---|
| Box 1 | Taxable interest paid to you during the year (not including box 3) | Report as interest income |
| Box 2 | Interest or principal forfeited because of early withdrawal of time savings | You may deduct it to figure adjusted gross income |
| Box 3 | Interest on U.S. Savings Bonds, Treasury bills, bonds and notes | May or may not all be taxable (see Pub. 550); exempt from state and local income tax |
| Box 4 | Backup withholding | Include it on your return as tax withheld |
| Box 6 | Foreign tax paid | May be a deduction or a credit |
| Box 8 | Tax-exempt interest | Reported on your return, but not federally taxable |
| Box 9 | Tax-exempt interest subject to the alternative minimum tax (included in box 8) | See the Form 6251 instructions |
Yes. You must report all taxable and tax-exempt interest on your federal income tax return, even if you do not receive a Form 1099-INT or Form 1099-OID. If you received payments of interest and/or tax-exempt interest of $10 or more, you should receive a Form 1099-INT or 1099-OID reporting them. Other interest paid to you by a business is reported on Form 1099-INT if it is $600 or more. Interest credited to an account you can withdraw from without penalty is taxable income in the year it becomes available to you.
| Type of interest | Federal tax | State and local tax |
|---|---|---|
| Bank accounts, money market accounts, certificates of deposit, corporate bonds | Taxable | Check your state's rules |
| Treasury bills, notes and bonds (Box 3) | Taxable | Exempt |
| Tax-exempt bonds (Box 8) | Reportable but not taxable at the federal level | Check your state's rules |
| Interest on a delayed tax refund | Taxable; may be reported on Form 1099-INT | Check your state's rules |
| Series EE and Series I savings bond interest | Generally not included until the bonds mature or are redeemed, unless you elect to include it each year | Exempt |
Reporting tax-exempt interest is an information-reporting requirement only: it does not convert tax-exempt interest into taxable interest. Interest from certain Series EE and Series I bonds used for qualified higher education expenses may be excluded; figure the exclusion on Form 8815.
Interest is added to your other income and taxed at your rates. As an illustration, suppose a single filer's interest falls entirely in the 22% federal bracket (taxable income over $50,400 up to $105,700 for single filers in 2026). Then $10,000 of taxable interest adds $2,200.00 of federal income tax ($10,000 x 22%). Interest in a lower bracket costs less; interest that pushes income into a higher bracket costs more. State tax is extra, except on Treasury interest.
See our 2026 federal brackets guide to find your bracket.
You must give the payer of interest income your correct taxpayer identification number; otherwise you may be subject to a penalty and backup withholding. Backup withholding shown in Box 4 is included on your return as tax withheld. See our Form W-9 guide.
IRS Form 1099-INT instructions, IRS Topic no. 403, Interest received.