Banks send tax forms only if your account earned interest or had other taxable income
Most checking accounts do not generate tax forms. Banks only send you a tax form if your account earned interest during the year, or in rare cases if you received other income tied to the account. A standard checking account that simply holds your paycheck and pays your bills produces no tax paperwork from the bank.
The form you might receive is called a 1099-INT, which reports interest income. Banks are required to send this form to you and to the IRS if your account earned $10 or more in interest during the calendar year. Some banks send the 1099-INT even if interest was below $10, but they are not required to do so.
You need to report this interest income on your tax return whether or not the bank sends you a form. If you earned interest but did not receive a 1099-INT, contact your bank to ask for one, or use your account statements to calculate the total interest yourself.
Key Takeaways
- Banks send a 1099-INT form only if your checking account earned $10 or more in interest during the year.
- A regular checking account that holds deposits and pays bills does not produce any tax forms.
- You must report interest income on your tax return even if the bank does not send you a 1099-INT.
- The 1099-INT arrives by January 31 each year and shows the total interest your account earned.
- High-yield checking accounts are more likely to generate a 1099-INT because they pay higher interest rates.
When banks send a 1099-INT and what it shows
Your bank mails or delivers the 1099-INT by January 31 of the year following the tax year. For example, interest you earned during 2024 appears on a 1099-INT you receive by January 31, 2025. The form shows your account number, the total interest paid to you, and your bank's tax identification number.
The bank sends copies to you and to the IRS at the same time. This means the IRS already has a record of the interest income before you file your return. If you do not report it, the IRS will notice the mismatch and may send you a notice or bill you for unpaid tax.
Some banks also send a 1099-INT if you had a checking account that was closed during the year and earned interest before closure. The form covers only the interest earned while the account was open.
Types of checking accounts that generate tax forms
Standard checking accounts at most banks pay little or no interest, so they rarely produce a 1099-INT. High-yield checking accounts pay significantly higher interest rates—sometimes 4% to 5% annually—and almost always generate a 1099-INT because the interest earned exceeds $10.
Rewards checking accounts that pay cash back or points do not produce a 1099-INT. The rewards are not considered taxable interest income by the IRS, even though they have monetary value. However, if a rewards account also pays interest on the balance, that interest portion is reported on a 1099-INT.
Money market accounts and savings accounts follow the same rule: they send a 1099-INT if interest earned reaches $10 or more. If you hold multiple accounts at the same bank, each account is tracked separately, but the bank may combine them on a single 1099-INT form.
What to do if you do not receive a 1099-INT
If your checking account earned interest but you did not receive a 1099-INT by early February, contact your bank directly. Ask whether the account earned enough interest to require a form. Some banks have online portals where you can view tax documents, so check there first.
If the bank confirms you earned interest but will not send a form, you can still report the income using your account statements. Pull up your monthly statements from the entire tax year and add up all interest deposits. This total is what you report on your tax return, even without an official form.
If you received a 1099-INT but believe it is wrong—for example, the amount does not match your statements—contact the bank in writing and ask for a corrected form. The bank can issue a corrected 1099-INT, which it will also send to the IRS. Keep copies of your correspondence and statements in case the IRS questions the discrepancy.
How to report checking account interest on your tax return
Interest income from a checking account goes on Schedule B (Interest and Ordinary Dividends) if you file Form 1040. If your total interest and dividend income is $1,500 or less, you may be able to report it directly on Form 1040 without filing Schedule B, depending on your filing status and other income.
Enter the name and tax ID of the bank, then the interest amount. If you received a 1099-INT, use the amount shown in Box 1 of that form. If you did not receive a form, use the total you calculated from your statements.
If you use tax software, it will usually prompt you to enter this information and place it in the correct location on your return. If you file by hand or work with a tax preparer, provide them with a copy of the 1099-INT or a list of the interest amounts from each account.
Checking accounts at credit unions and online banks
Credit unions follow the same 1099-INT rules as traditional banks. If your credit union checking account earned $10 or more in interest, you receive a 1099-INT by January 31. Online banks that offer checking accounts also send 1099-INT forms when interest thresholds are met.
Online banks often pay higher interest on checking accounts than brick-and-mortar banks, so you are more likely to receive a 1099-INT from an online checking account. Some online banks advertise their interest rates prominently because the interest is a selling point, which means most customers will receive a tax form.
If you switched banks during the year, you may receive multiple 1099-INT forms—one from each bank where you held a checking account. Each form covers only the interest earned while your account was at that bank. Add all the interest amounts together when you report on your tax return.
Interest income below $10 and tax reporting
Banks are not required to send a 1099-INT if interest earned is less than $10, but you are still required to report it on your tax return. This situation is common with low-balance accounts or accounts opened late in the year.
If you earned $5 in interest but received no form, you still owe tax on that $5. Use your account statements to calculate the total and report it on Schedule B or Form 1040, depending on your total interest and dividend income for the year.
Some banks send a 1099-INT even when interest is below $10 as a courtesy or because of their internal policies. If you receive one, use it. If you do not, your statements are sufficient proof of the amount you earned.
Frequently Asked Questions
Do I need to report checking account interest if I did not receive a 1099-INT?
Yes. You must report all interest income on your tax return, whether or not the bank sends a form. If your account earned interest, use your statements to calculate the total and report it on Schedule B or Form 1040.
What if my 1099-INT shows the wrong amount?
Contact your bank in writing and ask for a corrected form. The bank will issue a corrected 1099-INT and send it to the IRS. Keep copies of your statements and correspondence. If the IRS contacts you, you have documentation to show the correct amount.
Can I avoid getting a 1099-INT by closing my checking account before the end of the year?
No. The 1099-INT reports interest earned during the calendar year, regardless of when you close the account. If you earned $10 or more in interest before closing, the bank still sends a form.
Do rewards or cash back on a checking account count as taxable income?
Rewards and cash back are generally not taxable. Only interest paid on the account balance is reported on a 1099-INT. If your account pays both interest and rewards, only the interest portion appears on the form.
What if I have multiple checking accounts at the same bank?
Each account is tracked separately for interest purposes. The bank may combine them on one 1099-INT or send separate forms depending on how the accounts are registered. Either way, report all interest earned across all your accounts on your tax return.