You get a 1099 only if your savings account earned $10 or more in interest during the year
Banks send a Form 1099-INT (Interest Income) when the interest you earned on a savings account, money market account, or certificate of deposit reaches $10 or more in a calendar year. If your account earned less than $10, the bank is not required to send one, but you still owe tax on that interest. The bank reports the 1099-INT to the IRS at the same time they mail or deliver it to you, usually by January 31 of the following year.
The $10 threshold applies per bank, not per account. If you have two savings accounts at the same bank and together they earned $15 in interest, you will receive one 1099-INT showing the combined amount. If you have accounts at different banks, each bank sends its own 1099-INT if that bank's accounts crossed $10.
You must report this interest income on your tax return even if you do not receive a 1099-INT. The IRS has a record of what the bank reported, so underreporting or omitting it creates a mismatch that can trigger a notice.
Key Takeaways
- Banks send Form 1099-INT when savings account interest totals $10 or more in a calendar year, and they mail it by January 31.
- The $10 threshold is per bank, so interest from multiple accounts at the same bank counts together toward that limit.
- You must report all interest income on your tax return, even amounts under $10 that do not trigger a 1099-INT.
- The 1099-INT shows the interest earned in the prior calendar year, not the year you receive the form.
- High-yield savings accounts and money market accounts also generate 1099-INT forms if interest reaches $10.
What information appears on the 1099-INT
The 1099-INT lists your name, address, and Social Security number or tax ID; the bank's name and routing number; and the total interest paid during the calendar year. Box 1 shows the interest income. Boxes 2 through 5 cover U.S. savings bonds, federal interest, and other categories that rarely apply to ordinary savings accounts.
The form also shows whether any federal income tax was withheld from your account. Most savings accounts do not have withholding, so this box is usually blank. If you had a very high interest balance and the bank withheld tax, that amount appears in Box 4.
You receive Copy B of the 1099-INT in the mail or through your bank's online portal. The bank keeps Copy A for its records and sends Copy C to the IRS. Keep your copy with your tax documents for at least three years.
How to report 1099-INT interest on your tax return
On Form 1040 (the main individual income tax return), interest income goes on Schedule 1, Line 8. If you are filing electronically, your tax software will ask for the 1099-INT information and place it in the correct spot. If you are filing by paper, write the total interest from Box 1 of the 1099-INT on the line and attach a copy of the form to your return.
If you have multiple 1099-INT forms from different banks, add them together and report the total on Schedule 1. You do not need to list each bank separately unless the total exceeds $1,500, in which case you must also complete Schedule B (Interest and Ordinary Dividends).
Interest income is taxed as ordinary income at your regular tax rate. It does not get special treatment like long-term capital gains. The amount you owe depends on your total income and tax bracket for the year.
When you do not receive a 1099-INT but earned interest
If your savings account earned interest but the total was under $10, the bank will not send a 1099-INT. You still must report that interest on your tax return. Look at your year-end account statement or the interest posted to your account during the year and add it up yourself.
This situation is common with low-balance savings accounts or accounts opened late in the year. The IRS does not know about this interest unless you report it, but reporting it is the correct approach. If the IRS later discovers unreported interest through a bank audit, the penalty and interest owed can exceed the original amount.
Some people skip reporting interest under $10 because they assume the IRS will not notice. The risk is small but real, and the cost of being wrong is higher than the tax owed on a few dollars of interest.
Interest from high-yield savings and money market accounts
High-yield savings accounts and money market accounts at banks generate 1099-INT forms the same way regular savings accounts do. Because these accounts pay higher interest rates, you are more likely to cross the $10 threshold, even with a modest balance. An account earning 4% to 5% annual interest will hit $10 on a balance of $200 to $250.
If you moved money into a high-yield account mid-year, the 1099-INT will show only the interest earned from the date the account opened. Interest earned before you moved the money to that bank appears on a 1099-INT from your previous bank.
Money market accounts held at banks (not brokerage firms) are treated the same as savings accounts for 1099-INT purposes. Money market funds held inside a brokerage account generate different tax forms and are not covered by the 1099-INT rules.
What to do if your 1099-INT has an error
If the 1099-INT shows the wrong interest amount, wrong account holder name, or wrong tax ID, contact the bank immediately. Ask them to issue a corrected 1099-INT (marked as a correction) and send it to you and the IRS. This must happen before you file your return if possible, but corrections can be filed after the fact.
Do not ignore an incorrect 1099-INT and report a different number on your tax return. The IRS will see the mismatch between what you reported and what the bank reported, and you will receive a notice asking you to explain the difference.
If the bank refuses to correct an obvious error, file your return with the correct amount and attach a note explaining the discrepancy. Keep a copy of your correspondence with the bank showing you tried to get it corrected.
Interest from accounts at credit unions and online banks
Credit unions send 1099-INT forms under the same $10 threshold as banks. Online banks that are FDIC-insured operate under the same rules. The form looks identical and is reported to the IRS the same way.
Some online banks and credit unions deliver the 1099-INT only through your online account portal, not by mail. Check your account settings in January to see whether a 1099-INT is available for download. If you cannot find it, call the institution and ask them to mail a paper copy.
If you have accounts at multiple online banks, each one sends its own 1099-INT if that institution's interest reached $10. Add all of them together when you report on your tax return.
Frequently Asked Questions
Do I need to report interest if I earned less than $10?
Yes. The $10 threshold only determines whether the bank sends a 1099-INT, not whether you owe tax on the interest. You must report all interest income on your tax return, even if it is $1. Look at your account statements to find the total interest posted during the year.
What if I have a joint savings account with someone else?
The bank will send a 1099-INT to the primary account holder with the full interest amount listed. If you and the other owner split the interest for tax purposes, you each report your share on your own tax return. Keep documentation showing how you divided it in case the IRS asks.
Can I deduct savings account fees against the interest income?
No. Interest income is reported in full on your tax return. Account fees, maintenance charges, and other banking costs are not deductible against interest income. You report the gross interest shown on the 1099-INT without reducing it for fees.
What if the bank sent a 1099-INT to the wrong address?
Contact the bank and provide your correct mailing address or confirm your online account portal is set up to receive documents. Ask them to resend the form. If you do not receive it by early February, call the bank and ask them to read the amount from Box 1 over the phone so you can report it on your return.
Do I report 1099-INT interest differently if I am self-employed?
No. Interest income from savings accounts is reported the same way on Schedule 1 regardless of whether you are self-employed. It is not business income and does not go on Schedule C. Self-employment tax does not apply to interest income.