You won't get a 1099 for a regular checking account
Banks do not send a Form 1099 for money sitting in a checking account, even if you have thousands of dollars there. A 1099 is only issued when you earn income — interest, dividends, or other money the bank pays you. A checking account balance is your own money, not income, so there is nothing to report to the IRS on a 1099.
The confusion usually comes from mixing up two different things: the money you own (which stays private between you and the bank) and the money the bank pays you for letting them use your money (which the IRS wants to know about). Only the second one triggers a 1099.
Key Takeaways
- Banks issue a 1099-INT only when they pay you interest on a checking or savings account, not for the account balance itself.
- You will receive a 1099-INT only if the interest earned reaches the bank's reporting threshold, which is often $10 but varies by bank.
- The 1099-INT arrives by January 31 each year and reports interest paid during the previous calendar year.
- If a bank pays you interest but does not send a 1099-INT, you still owe tax on that interest and should report it on your tax return.
When banks do send a 1099 for checking accounts
A bank sends a 1099-INT (Interest Income) when your checking account earns interest and that interest reaches the bank's threshold for reporting. Most banks report interest starting at $10, though some have higher thresholds. If your account earned $8 in interest, the bank may not send a 1099-INT, but you still owe tax on those $8.
Interest-bearing checking accounts are less common than they used to be, but they still exist — usually at credit unions, online banks, or through special account types. If your checking account earns any interest at all and you meet the reporting threshold, expect a 1099-INT by January 31 of the following year.
The 1099-INT reports only the interest paid during the calendar year (January 1 through December 31). It does not report your account balance, deposits, withdrawals, or any other activity.
What the 1099-INT shows and where to find it
The 1099-INT lists the bank's name and your account information at the top, then shows the interest paid in Box 1. Some banks also report early withdrawal penalties in Box 2, though this is rare for checking accounts. The form goes to you and to the IRS, so the IRS already knows about the interest before you file your return.
Banks mail 1099-INT forms by January 31, but many now offer online access through your account portal. Log into your bank's website and look for "tax documents," "1099," or "year-end statements." If you cannot find it online and the deadline has passed, call the bank's customer service line and ask them to mail a copy or resend it electronically.
Keep the 1099-INT with your tax records. You will need it to fill out your tax return, and the IRS will match it against what you report.
Checking accounts that do not earn interest
Most checking accounts today earn no interest at all. If your account earns zero interest, the bank will not send a 1099-INT, and there is nothing to report to the IRS. This is true whether you have $100 or $100,000 in the account — the balance itself is never reported on a 1099.
Some banks offer "no interest" checking as their standard product. Others offer tiered accounts where you earn interest only if you meet certain conditions (direct deposit, minimum balance, debit card transactions). If you are unsure whether your account earns interest, check your account agreement or call the bank and ask.
How to report checking account interest on your tax return
If you received a 1099-INT, report the interest on Schedule B (Interest and Ordinary Dividends) if you have other investment income, or directly on Form 1040 (line 1b) if the 1099-INT is your only interest income. The amount goes on the line labeled "Interest."
If the bank paid you interest but did not send a 1099-INT (because it was below the reporting threshold), you still owe tax on it. Add up all the interest yourself and report it the same way. The IRS does not forgive tax on unreported income just because the bank did not send a form.
If you received multiple 1099-INT forms from different banks, add them all together and report the total on your return.
What happens if you do not receive a 1099-INT
If your bank paid interest and you expected a 1099-INT but did not receive it by February 15, contact the bank. Ask whether they sent it and request a copy. Keep a record of when you asked and what they told you.
If the bank confirms they issued a 1099-INT but you never received it, ask them to mail another copy or provide it electronically. If they say no 1099-INT was issued because the interest was below their reporting threshold, you still owe tax on that interest — report it on your return anyway.
If you cannot get a 1099-INT from the bank and you know you earned interest, report the interest amount you can document (from your statements or bank records) on your tax return. The IRS may follow up later, but reporting what you know is better than reporting nothing.
Frequently Asked Questions
Do I owe taxes on checking account interest even if the bank does not send a 1099?
Yes. The bank's failure to send a 1099-INT does not erase the tax obligation. If you earned interest, you owe tax on it regardless of whether the bank reported it. Report the interest on your return using your bank statements as proof.
What if I have multiple checking accounts at different banks?
Each bank sends its own 1099-INT if interest reaches their threshold. Add up all the interest from all the forms and report the total on your tax return. If one bank did not send a 1099-INT because interest was low, include that interest in your total anyway.
Can I deduct fees or charges against the interest I earned?
No. The 1099-INT reports gross interest only — the full amount before any fees. You cannot reduce the reported interest by subtracting account fees or other charges. Report the full 1099-INT amount on your return.
Is checking account interest different from savings account interest for tax purposes?
No. Both are reported on a 1099-INT the same way, and both are taxed as ordinary income. The account type does not matter — only whether interest was paid and whether it reached the reporting threshold.
What if I closed my checking account during the year?
The bank still sends a 1099-INT for interest earned before you closed it. The form will show the interest paid through the closing date. Report it on your return for the year you closed the account.