Form 1099-INT-Interest Income

Form 1099-INT-Interest Income

RECIPIENTS identification number is the social security number of the owner of the account.

Box 1. This box includes amounts that are paid or credited to the taxpayer's account by savings and loan associations, building and loan associations, cooperative banks, homestead associations, credit unions, and similar organizations.

It includes interest on bank deposits, corporate bonds, debentures, notes, certificate, stockholder's accounts, and any interest paid in the course of trade or business totaling $600 or more to any one individual.


Box 2. The early withdrawal penalty is the interest penalty due to an early withdrawal of time deposits. It is entered on line 30, Form 1040. It does not affect the entry of interest income from Box 1.

Box 3. Interest from U.S. Savings Bonds and Treasury obligations is entered here Generally, this income is taxable on the federal return, but nontaxable on state returns. Box-3 amounts are entered on the federal return in the same manner as Box-1 amounts.

Box 4. Usually, tax isn't withheld from interest payments. However, if the taxpayer has failed to provide the payer with this social security or other identifying number, the payer is required to withhold 31 percent of the interest paid. Any amount withheld is entered in Box 4.

Box 5. Any amount shown in this box is the taxpayer's share of investment expenses from a real estate mortgage investment conduit (REMIC). A REMIC is a corporation similar to a mutual fund that invests in mortgage. If the taxpayer itemizes, he may deduct this amount as an itemized deduction.

Box 6. Foreign tax paid is any foreign tax withheld from the interest income. The taxpayer mat take a dollar-for-dollar credit for this tax, or deduct it from his taxable income as an itemized deduction.

Box 7. Foreign country or U.S. possession is the country or possession to which  the foreign tax was paid.