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How to complete IRS Form 1099-INT

IRS Form 1099-INT is used to report interest income paid to individuals. Any organization that has paid interest income, withheld foreign tax on interest or withheld federal tax under the backup withholding rules must file IRS Form 1099-INT.

Form 1099-INT was revised in 2012. The top of the form shows the payer name and address and TIN followed by the recipient name, address and TIN.

The form asks for the account number. The account number is just a unique number that the employer uses to distinguish this employee’s account. If you are electronically submitting files with 250 records or more to the IRS, then you need an unique account number.

There are 13 boxes on IRS Form 1099-INT. Each box is discussed below:

Box 1. Shows taxable interest income paid to the recipient during the calendar year by the payer. Box 1 does not include interest shown in Box 3.

Box 2. Shows interest or principal forfeited because of early withdrawal. Oftentimes, Box 2 is blank but if a value does exist, the recipient may deduct this amount to figure their adjusted gross income on their income tax return.

Box 3. Shows interest on US Savings Bonds, Treasury bills, Treasury bonds and Treasury notes. This interest is exempt from state and local income taxes.

Box 4. Shows federal income tax withheld. Withholding typically applies if the recipient fails to furnish a correct SSN to the payer. This box is oftentimes blank.

Box 5. Shows investment expenses.

Box 6. Shows foreign tax paid.

Box 7. Shows foreign country or us possession.

Box 8. Shows tax-exempt interest paid to the recipient during the calendar year by the payer.

Box 9. Shows specified private activity bond interest.

Box 10. Shows tax-exempt bond CUSIP number(s).

Boxes 11-13. Shows state, state identifcation number and state tax withheld. These 3-boxes are new for the 2012 IRS Form 1099-INT.

Copy B of IRS Form 1099-INT is mailed to the recipient by the end of January. Copy A of 1099-INT is paper filed with Form 1096 by the end of February. The IRS requires electronically filed 1099-INT forms to be submitted by the end of March. You can request and automatically receive a one-month extension taking the due date for electronically submitting 1099-INT forms to the IRS by the end of April.

Use 1099 software to make the e-filing process easier and to comply with federal submission standards. For first-time filers, you will need to register with the IRS. The IRS will assign you a Transmitter Control Code. This is an identification code you will use when e-filing using the FIRE System. Apply for this code by filling out IRS form 4419.

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Erich J. Ruth

Erich J. Ruth provides technical support for National Software which is the parent company for 1099FIRE. 1099FIRE develops and markets a comprehensive range of products that enables any size of business or institution to effectively manage and comply with year-end filing requirements. 1099FIRE is an employee-owned company located in Phoenix, Arizona.

If you have any questions or comments about our software, feel free to contact us at any time.

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  1. Sue Hilton
    February 9th, 2017 at 11:48 | #1

    I desperately need the Data key (like I have for the Import 1097-BTC Data) for the 1099-INT for 2016. As you well know, the form changed in 2016 and I’m trying to set up my import file and I don’t have a clue as to what some of the columns mean. HELP!!! PLEASE!!!

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  2. February 9th, 2017 at 11:53 | #2

    A sample excel import file is here

    https://www.1099fire.com/support/import/index.htm

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