The 1099-INT minimum is $10. Any bank, brokerage, or other payer that pays you at least $10 in interest during the calendar year has to send you a Form 1099-INT and file a copy with the IRS.1Office of the Law Revision Counsel. 26 USC 6049 – Returns Regarding Payments of Interest2Internal Revenue Service. About Form 1099-INT, Interest Income The threshold decides whether the institution has to generate paperwork. It does not decide whether you owe tax. You owe tax on every dollar of interest you earn, form or no form.
How the $10 Adds Up
The $10 is cumulative across the year under a single taxpayer identification number. Twelve monthly interest credits of $0.90 each total $10.80 and cross the line. If the year-end total lands at $9.99 or less, the payer generally has no obligation to send the form.
What counts toward the $10 is broader than a savings account balance. Interest-bearing checking, certificates of deposit, and corporate bonds all count. So does U.S. Treasury interest, which lands in Box 3 of the form and is typically exempt from state and local income tax. Non-cash bank sign-up bonuses, like a gift card or merchandise for opening an account, count at their fair market value.
Tax-exempt interest from municipal bonds appears in Box 8 of the form but doesn’t feed into your taxable income.2Internal Revenue Service. About Form 1099-INT, Interest Income Original issue discount is reported separately on Form 1099-OID.3Internal Revenue Service. About Form 1099-OID, Original Issue Discount
When the $10 Floor Disappears
Two situations force the payer to issue a 1099-INT no matter how small the interest was:
- Backup withholding. If the payer withheld federal tax from your interest because you didn’t provide a correct taxpayer identification number, the form must be issued regardless of the amount. The backup withholding rate is 24%.4Office of the Law Revision Counsel. 26 USC 3406 – Backup Withholding
- Foreign tax withheld. If the payer withheld and paid any foreign tax on your interest, the form is required even if the underlying interest was under $10.2Internal Revenue Service. About Form 1099-INT, Interest Income
Some recipients don’t get 1099-INTs at all, even above $10. Corporations, tax-exempt organizations, and individual retirement arrangements generally fall outside the reporting requirement.
Interest Below $10 Is Still Taxable
This is the point that trips people up. The $10 minimum is a paperwork threshold for the institution. It is not a tax exemption for you. A few cents of interest is taxable income and belongs on your federal return. The IRS position doesn’t turn on whether a form showed up in your mail.
If your total taxable interest for the year stays at $1,500 or less, you can put the amount straight on Form 1040 without extra schedules. Once taxable interest tops $1,500, you have to file Schedule B and list each payer and the amount from each.5Internal Revenue Service. About Schedule B (Form 1040), Interest and Ordinary Dividends The $1,500 trigger applies separately to ordinary dividends.6Internal Revenue Service. 2025 Instructions for Schedule B (Form 1040)
Keep your own records. Three savings accounts each paying $4 in interest produce no 1099-INTs, but you still owe the IRS a report of all $12. Year-end bank statements and brokerage summaries are the easiest way to catch these small amounts.
If Your 1099-INT Is Missing or Wrong
If February arrives and a form you expected hasn’t shown up, contact the payer directly and ask for a copy. If you still don’t have it by the end of February, you can call the IRS at 800-829-1040, and the IRS will reach out to the payer on your behalf.7Internal Revenue Service. What to Do When a W-2 or Form 1099 Is Missing or Incorrect
If the filing deadline arrives and the form still hasn’t come, report the interest using your best estimate from bank statements. If the form arrives later with a different number, file an amended return on Form 1040-X.7Internal Revenue Service. What to Do When a W-2 or Form 1099 Is Missing or Incorrect
If a form you did receive is wrong, ask the payer for a corrected version rather than filing with your own adjusted figure. The IRS matches its records against what the payer filed, and a mismatch can trigger an automated notice.