Why Did I Get a 1099-INT From the IRS in 2023? Understanding Your Interest Income Form

Who Actually Receives This Form

If you received a Form 1099-INT in 2023, it means a financial institution reported interest payments to you during that tax year. Banks, credit unions, brokerage accounts, and investment firms send this form to anyone earning at least $10 in interest income. The threshold is per institution, so if you have multiple accounts across different banks, you might receive several of these forms.

This applies whether your interest came from a savings account, certificates of deposit (CDs), U.S. savings bonds, money market accounts, or even private loans where interest was paid to you. The IRS also receives a copy of every Form 1099-INT filed, which is why the information must match what you report on your tax return.

What Information Does the Form Contain

Form 1099-INT provides a breakdown of your interest earnings and any taxes already withheld. The document includes the payer’s details, your taxpayer identification number (TIN), and the total interest amount. It may also show federal or state income tax withholdings, particularly if backup withholding applies to your account.

In some cases, the form reports special interest types, such as tax-exempt interest from municipal bonds or interest from U.S. savings bonds. Understanding which interest is taxable and which is tax-exempt is crucial for accurate reporting.

Why You’re Required to Report This Income

Even if you don’t receive a Form 1099-INT because your interest fell below $10, you’re still legally required to report all taxable interest income on your tax return. The IRS cross-references all 1099-INT forms filed against individual returns, and mismatches can trigger penalties or audits.

For most taxpayers, interest income goes on Schedule B of Form 1040 if total interest exceeds $1,500. If taxes were already withheld from your interest payments, you can claim those amounts as tax credits when filing.

Steps to Verify Your Form 1099-INT

When you receive the form, carefully review it for accuracy. Check that your name, taxpayer identification number, and the interest amount are correct. If you spot errors, contact the issuing financial institution immediately to request a correction and an amended form.

Keep in mind that the IRS has already received a matching copy. Filing your tax return with conflicting information could automatically trigger compliance issues or an audit. Cross-reference the Form 1099-INT against your bank statements or online account records to confirm the figures match.

Reporting Requirements for Different Situations

Tax-exempt interest still requires reporting on your return even though it may not be subject to federal taxation. If you earned interest in multiple accounts or from different institutions, you’ll report each 1099-INT’s information cumulatively on your Schedule B.

Sole proprietors and small business owners who have interest-bearing business accounts may also receive these forms. The reporting requirement remains the same: include all interest income on your federal tax return.

What Financial Institutions Must Do

Any entity paying interest—including banks, credit unions, investment firms, and even individuals lending money—must provide Form 1099-INT to recipients and file copies with the IRS. Even if total interest paid is less than $10, institutions may still file as part of their recordkeeping procedures.

Filers must submit the form to recipients by January 31 and to the IRS by February 28 for paper submissions or March 31 for electronic filings. Some states require separate submissions to local tax authorities based on their regulations.

Bottom Line on 1099-INT in 2023

Receiving a Form 1099-INT means you have reportable interest income that must appear on your 2023 tax return. Accuracy is critical—the IRS compares your reported figures directly against the institutional filings. Tracking your interest earnings throughout the year and carefully reviewing each Form 1099-INT will help ensure compliance and potentially avoid audit complications.