You get a 1099 only if your checking account earned interest above a certain threshold
Banks send a Form 1099-INT (Interest Income) when the interest paid into your checking account reaches $10 or more during the tax year. If your account earned less than $10, the bank does not issue a 1099, though you still owe tax on that interest. Some banks may issue a 1099 even below $10 if their internal policy requires it, so check your mail and your online banking portal in January and February.
A regular checking account with no interest earns nothing, so you will not receive a 1099 for it. High-yield checking accounts, money market accounts, and savings accounts do earn interest and will trigger a 1099 if the threshold is met. The bank reports the interest to both you and the IRS, so the IRS already knows about it before you file your return.
The 1099-INT shows the account holder's name, Social Security number or tax ID, the bank's name and routing number, and the total interest earned. If you have multiple accounts at the same bank, they may combine the interest on one 1099 or issue separate forms for each account—this varies by bank.
Key Takeaways
- Banks issue Form 1099-INT only when checking account interest reaches $10 or more in a calendar year.
- Interest below $10 does not require a 1099, but you still report it on your tax return.
- The 1099-INT arrives by January 31 and is also sent to the IRS automatically.
- High-yield checking accounts are more likely to trigger a 1099 than traditional checking accounts, which usually earn no interest.
- If you do not receive a 1099 by early February, contact your bank to confirm whether interest was earned and whether a form will be issued.
How the $10 threshold works
The $10 rule is a reporting threshold set by the IRS, not a tax threshold. You owe tax on all interest you earn, whether it is $1 or $100. The bank's only obligation to send a 1099-INT is when interest reaches $10. Below that, the bank may still track the interest in your account statements, but no form goes to the IRS.
This threshold has not changed in decades. It applies to all types of interest income reported on a 1099-INT: interest from checking accounts, savings accounts, money market accounts, and CDs. If you have accounts at multiple banks, each bank calculates its own threshold separately. Interest at Bank A and interest at Bank B do not combine—each bank looks only at what it paid you.
If you earned $8 at one bank and $5 at another, neither bank sends a 1099, but you still owe tax on the full $13. You report it on your tax return using the interest shown in your account statements or your own records.
When you receive the 1099-INT and what to do with it
Banks must send the 1099-INT to you by January 31 of the year following the tax year. For example, interest earned in 2024 appears on a 1099-INT mailed by January 31, 2025. The form also goes to the IRS at the same time, so the agency has a record of your interest income before you file.
When you receive the 1099-INT, check it for accuracy. Verify that the account holder's name and Social Security number match your records, and that the interest amount matches what you see in your account statements. If there is a discrepancy, contact your bank immediately—they can issue a corrected form (a 1099-INT marked "CORRECTED") before the IRS deadline.
Keep the 1099-INT with your tax records. You do not attach it to your return, but you use the interest amount to fill in Schedule 1 (Form 1040) or the interest income line on your return, depending on your tax software or preparer. If you use tax software, you can enter the information from the 1099-INT directly into the program.
What happens if you do not receive a 1099-INT
If you earned interest but did not receive a 1099-INT by early February, contact your bank first. Ask whether interest was credited to your account and whether a 1099 will be issued. Some banks mail forms later than others, or they may have sent it to an old address if you moved.
If the bank confirms that interest was earned but no 1099 will be sent (because it fell below $10), you still report the interest on your return. Use the amount shown in your account statements or your own records. The IRS does not expect a 1099 for amounts below $10, so reporting it without a form is normal and correct.
If the bank cannot locate a record of the interest or says it was not earned, ask for a statement showing all deposits and credits to the account for the tax year. This protects you if the IRS later questions why interest appears on your return but no 1099 was issued.
Interest income and your tax return
All interest income, whether reported on a 1099-INT or not, is taxable. You report it as ordinary income on your federal return. The interest is added to your other income and taxed at your regular rate—there is no special rate for interest.
If you have a joint account, only the person whose Social Security number appears on the 1099-INT receives the form. If both account holders should report the interest, you will need to split it between you based on your ownership agreement. This is a tax planning matter, not a banking matter, so consult a tax professional if you are unsure how to handle it.
Some states also tax interest income. Check your state's tax rules or consult a tax professional to see whether you owe state tax on the interest as well as federal tax.
High-yield accounts and 1099 forms
High-yield checking accounts and high-yield savings accounts earn significantly more interest than traditional accounts, so they are much more likely to trigger a 1099-INT. A high-yield checking account might pay 4% to 5% annual interest, while a traditional checking account pays 0% or close to it. At those rates, even a modest balance generates $10 or more in interest quickly.
If you recently opened a high-yield account, expect to receive a 1099-INT at tax time if your balance was substantial enough. The bank will send it automatically—you do not need to request it. If you are considering opening a high-yield account, factor in the tax on the interest when you calculate your net gain.
Money market accounts and CDs also earn interest and follow the same 1099-INT rules as checking and savings accounts. Any interest-bearing account at a bank or credit union may generate a 1099 if the threshold is met.
Frequently Asked Questions
Do I owe taxes on interest if I do not get a 1099?
Yes. The 1099-INT is a reporting form, not a tax bill. You owe tax on all interest you earn, regardless of whether the bank sends a form. If interest was below $10, no 1099 is required, but you still report it on your return using your account statements.
What if the 1099-INT shows the wrong amount?
Contact your bank immediately and ask for a corrected 1099-INT. The bank will issue a form marked "CORRECTED" and send it to you and the IRS. Keep both the original and corrected forms with your tax records. If you file before receiving the correction, you can file an amended return once you have the correct amount.
Can I get a 1099 for a checking account with no interest?
No. A traditional checking account that earns no interest will never generate a 1099-INT. Only accounts that earn interest above $10 trigger the form. If your account earned interest but you did not receive a 1099, the interest likely fell below the $10 threshold.
Do I need to attach the 1099-INT to my tax return?
No. You report the interest amount on your return, but you do not attach the 1099-INT itself. Keep it with your records in case the IRS asks questions later. Tax software typically guides you through entering the information from the form.
What if I moved and did not receive the 1099-INT?
Contact your bank and provide your current address. Ask them to mail a duplicate 1099-INT or to confirm the address they have on file. If you filed your return without the form and later receive it, check whether the amount matches what you reported. If it does not, you may need to file an amended return.