1099-INT vs 1099-MISC: Thresholds, 2026 Change, and Filing

Form 1099-INT and Form 1099-MISC report two different kinds of income, and the dividing line is straightforward. A 1099-INT covers interest your money earned while sitting in a bank account, CD, bond, or similar investment. A 1099-MISC covers non-service income like rent, royalties, prizes, and other payments that don’t fit under wages, interest, or dividends. If you did work for someone as a contractor, neither form applies — that income belongs on Form 1099-NEC.1Internal Revenue Service. Instructions for Forms 1099-MISC and 1099-NEC

When You Get a 1099-INT

Banks, credit unions, brokers, and other financial institutions issue a 1099-INT when they’ve paid you at least $10 in interest during the year.2Internal Revenue Service. About Form 1099-INT, Interest Income You’ll also get one regardless of the amount if backup withholding was taken from your account. A copy goes to the IRS at the same time you get yours.

The boxes that matter on a 1099-INT:

  • Box 1 shows your total taxable interest from savings accounts, CDs, corporate bonds, and similar sources.
  • Box 2 shows any early withdrawal penalty the bank charged when you cashed out a CD before maturity. You can deduct that amount on Schedule 1.
  • Box 3 covers interest from Treasury bills, notes, bonds, and U.S. savings bonds. It’s federally taxable but exempt from state and local income tax.
  • Box 4 shows any federal income tax withheld through backup withholding. It counts as a prepayment toward your tax bill.
  • Box 6 shows foreign tax paid on your interest, which you can claim as a credit or deduction to avoid double taxation.3Internal Revenue Service. Form 1099-INT
  • Boxes 8 and 9 report tax-exempt interest from municipal bonds. You report it on your return for information purposes; it generally doesn’t add to federal tax, though Box 9 tracks the piece that can trigger the alternative minimum tax.

When You Get a 1099-MISC

Form 1099-MISC covers a mix of payments that aren’t wages, interest, dividends, or compensation for services. Before 2020, independent contractor pay went here too, but the IRS moved that to a revived 1099-NEC starting with tax year 2020.4Internal Revenue Service. Publication 1220 (Rev. 9-2020) What’s left on the 1099-MISC is mostly passive and property-related income.

The main boxes:

  • Box 1 reports rent you received for the use of your real estate, equipment, or land.
  • Box 2 reports royalties from intellectual property, natural resources, or similar rights.
  • Box 3 is a catch-all for prizes, awards, taxable legal damages, and other payments that don’t fit another box.
  • Box 6 covers medical and health care payments from insurance plans or medical assistance programs to providers.
  • Box 10 covers gross proceeds paid to an attorney in connection with legal services.

The 2026 Threshold Change

For payments made in 2026, a payer only has to issue a 1099-MISC when the total for the year reaches $2,000 or more for most categories. That’s a large jump from the $600 threshold that stood for decades.5Internal Revenue Service. Form 1099-NEC and Independent Contractors Royalties and broker payments in lieu of dividends are the exception; those still trigger a form at $10.6Internal Revenue Service. About Form 1099-MISC The $2,000 figure will be adjusted for inflation starting in 2027.

The higher threshold doesn’t change what you owe. Income below $2,000 is still taxable, and the IRS still expects it on your return whether or not a form arrives.

The 1099-NEC Boundary

This is where people get tripped up. If you performed services as a contractor, freelancer, or consultant, that income belongs on Form 1099-NEC, not 1099-MISC. The IRS test is whether the payment was for services: work done for a business is 1099-NEC; money for the use of your property, a prize you won, or royalties you earned is 1099-MISC.1Internal Revenue Service. Instructions for Forms 1099-MISC and 1099-NEC The distinction changes which schedule you use and whether you owe self-employment tax.

How Each Form Lands on Your Return

The type of 1099 you receive dictates the schedule you file and whether self-employment tax applies. Mismatches here are a common source of IRS notices.

1099-INT

If your total taxable interest exceeds $1,500, complete Schedule B and list each payer.7Internal Revenue Service. About Schedule B (Form 1040), Interest and Ordinary Dividends Below that, report the total directly on Form 1040. Interest is taxed as ordinary income at your regular rate and is never subject to self-employment tax, because no service was performed to earn it.

An early withdrawal penalty from Box 2 comes off on Schedule 1 as an above-the-line deduction, so you get the benefit whether you itemize or take the standard deduction. Tax-exempt interest from Box 8 goes on a designated line of the 1040 for information only.

1099-MISC

Where 1099-MISC income lands depends on the box:

  • Rent (Box 1) and royalties (Box 2) usually go on Schedule E. If the rental amounts to a business with substantial services, closer to a hotel operation than a lease, Schedule C may apply instead.
  • Other income (Box 3) goes on the “Other income” line of Schedule 1. This isn’t automatically subject to self-employment tax unless it comes from an ongoing trade or business.8Internal Revenue Service. Form 1099-MISC
  • Medical payments (Box 6) received by a healthcare provider are typically business income on Schedule C.

Rental income and royalties on Schedule E are generally not subject to self-employment tax. That’s a meaningful contrast with 1099-NEC income, where SE tax of 15.3% applies to every dollar of net earnings above $400.

Backup Withholding on Both Forms

Interest and 1099-MISC payments can both be subject to backup withholding at a flat 24% rate. The payer is required to withhold when you haven’t given them a valid taxpayer identification number, when the IRS tells the payer your TIN is wrong, or when the IRS flags your account for underreported interest or dividends.9Internal Revenue Service. Topic No. 307, Backup Withholding The withheld amount appears in Box 4 of either form. It’s a prepayment, not a penalty; it counts toward what you owe and comes back as a refund if it exceeds your liability. The way to avoid it is to file a completed Form W-9 with every payer so they have the right Social Security number or EIN on file.

If a Form Is Missing, Wrong, or Below Threshold

You owe tax on the income either way. A missing 1099 is not an excuse, and waiting for one is not a reason to file late.

If nothing has arrived by mid-February, contact the payer directly. They were required to mail recipient copies by January 31, so a short delay is normal, but anything more warrants a call.10Internal Revenue Service. General Instructions for Certain Information Returns (2025) If the payer won’t respond, you can call the IRS at 800-829-1040. In the meantime, use your bank statements, account summaries, or payment records to figure the income and report it on the right schedule.

One thing to know: Form 4852 does not substitute for a missing 1099-INT or 1099-MISC. It’s a substitute only for Form W-2 or Form 1099-R.11Internal Revenue Service. Form 4852, Substitute for Form W-2 or Form 1099-R

If a corrected form arrives after you’ve filed and it changes your tax, file an amended return on Form 1040-X.12Internal Revenue Service. File an Amended Return The same goes for an error you catch on the original — ask the payer for a corrected version and amend if the numbers move. There’s no penalty for amending promptly once you have the right information. If you skip the income entirely, though, the IRS matching program will catch it against the payer’s copy, and the accuracy-related penalty is 20% of the underpaid tax.13Internal Revenue Service. Accuracy-Related Penalty Those notices can take a year or more to arrive, which is worth remembering before assuming a small amount slipped by.