You get a 1099 only if your bank paid you interest of $10 or more in a calendar year
Banks send a Form 1099-INT (Interest Income) when the interest they paid into your savings account reaches $10 or more between January 1 and December 31. If your account earned less than $10, you will not receive a 1099, but you still owe tax on that interest — you just report it yourself on your tax return.
The $10 threshold is federal. Some states have their own rules, but the IRS threshold is what triggers the bank's obligation to file and send you a copy. The bank sends one copy to you and files another with the IRS, so the IRS already knows about the interest before you file your return.
The 1099-INT shows the total interest paid into that account during the year. If you have multiple savings accounts at the same bank, they may combine the interest on one form or issue separate forms — this varies by bank. If you have accounts at different banks, each bank sends its own 1099-INT.
Key Takeaways
- Banks send Form 1099-INT only when interest reaches $10 or more in a calendar year; below that amount, you report the interest yourself.
- The 1099-INT arrives by January 31 of the year after the interest was paid, and the IRS receives a copy at the same time.
- Interest under $10 still counts as taxable income even without a 1099, so keep your own records if you do not receive one.
- High-yield savings accounts and money market accounts are more likely to trigger a 1099 than traditional savings accounts because they pay higher interest rates.
When the 1099 arrives and what it contains
Your bank mails the 1099-INT by January 31 of the year following the tax year in which you earned the interest. If you earned $15 in interest during 2024, you receive the form by January 31, 2025, and you use it to file your 2024 tax return.
The form shows your name, address, and tax ID (usually your Social Security number), the bank's name and ID number, and the total interest paid. Box 1 on the form contains the interest amount. If the interest was from a U.S. savings bond, that appears in a different box, but regular savings account interest goes in Box 1.
Some banks also report federal income tax withheld from your account, though this is rare for savings accounts. If it appears, it shows in Box 4. You will need this number when you file your return because it reduces what you owe.
How to report the interest on your tax return
You report the interest from your 1099-INT on Schedule B (Interest and Ordinary Dividends) if you have more than $1,500 in total interest and dividends for the year. If you have $1,500 or less, you can report it directly on Form 1040 without using Schedule B.
The interest is taxed as ordinary income at your regular tax rate. If you earned $50 in savings account interest and you are in the 22% tax bracket, you owe roughly $11 in federal tax on that interest (before any deductions or credits that might lower your overall tax bill).
If you did not receive a 1099-INT but you know you earned interest, you still report it. Look at your bank statements for the year and add up all the interest deposits. Write the total on Schedule B or Form 1040 with a note that it came from your savings account. The IRS may not have a record of it, but you are required to report it anyway.
High-yield savings accounts and when they trigger a 1099
High-yield savings accounts and money market accounts pay interest rates that are much higher than traditional savings accounts — often 4% to 5% annually compared to 0.01% or less at large banks. Because of these higher rates, you are far more likely to earn $10 or more in interest within a year, even with a modest balance.
A $2,000 balance in a high-yield account earning 4.5% annually generates about $90 in interest, which triggers a 1099-INT. The same $2,000 in a traditional savings account earning 0.01% generates 20 cents, which does not. This is why people who move money to high-yield accounts often see their first 1099-INT.
If you have multiple high-yield accounts at different online banks, each bank sends its own 1099-INT. You report all of them on the same Schedule B, adding the totals together.
What to do if you do not receive a 1099-INT
If you earned $10 or more in interest but did not receive a 1099-INT by February 15, contact your bank directly. Ask whether the form was mailed to an old address or if there was an error in your tax ID. Banks sometimes send forms to the wrong address if your account information is outdated.
If the bank confirms it sent the form and you still cannot find it, ask the bank for a duplicate copy. Most banks can reissue it within a few business days. You can also ask the bank to email you a copy of the interest statement from your account for that year, which shows the same information.
If you earned less than $10 in interest, you will not receive a 1099-INT at all. You still report the interest on your tax return by looking at your bank statements and adding up the deposits labeled "interest" or "interest paid."
Correcting errors on your 1099-INT
If the 1099-INT shows the wrong interest amount or has your name or tax ID wrong, tell your bank immediately. The bank will issue a corrected form, called a 1099-INT with "CORRECTED" printed on it, and file the correction with the IRS.
You do not need to do anything special when you receive a corrected 1099-INT — just use the corrected amount on your tax return. If you already filed your return using the wrong amount, you can file an amended return (Form 1040-X) once you have the corrected form, but many people wait to see if the IRS catches the discrepancy first.
If the bank made an error and you reported the wrong amount to the IRS, the IRS will likely send you a notice asking you to explain the difference. Having the corrected 1099-INT in hand makes it easy to resolve.
Joint accounts and who receives the 1099-INT
If you have a joint savings account, the bank typically sends the 1099-INT to the first account holder listed on the account. Both owners are responsible for reporting the interest, but only one receives the form. The second owner should ask the first owner for a copy or contact the bank to request one.
If you and the other account holder split the interest for tax purposes (which you should do if you each contributed equally), you each report your share on your own tax return. The person who receives the 1099-INT should note on their return that they are reporting only a portion of the interest and explain why.
Some banks allow you to designate which account holder receives the 1099-INT. If this matters for your situation, call the bank and ask whether you can change it.
Frequently Asked Questions
Do I owe taxes on interest if I do not get a 1099?
Yes. Interest under $10 is still taxable income even though the bank does not send a 1099. You report it on your tax return using your bank statements as proof. The IRS may not know about it unless you report it, but you are legally required to do so.
What if I have savings accounts at five different banks?
Each bank sends its own 1099-INT if the interest reaches $10. You receive five separate forms and report all of them on the same Schedule B, adding the interest amounts together. The IRS receives copies of all five forms and matches them to your tax return.
Can I avoid getting a 1099 by keeping my balance low?
Yes, but only if your balance is so low that the interest earned stays below $10 for the year. In a high-yield account paying 4.5%, you would need to keep less than about $2,200 in the account. In a traditional savings account paying 0.01%, you could keep hundreds of thousands without reaching $10 in interest.
Do I report a 1099-INT if I closed the account during the year?
Yes. The 1099-INT reports interest earned during the calendar year, regardless of when you closed the account. If you earned $12 in interest before closing the account in June, you still receive a 1099-INT and report it on your tax return for that year.
What if the bank sent my 1099-INT to the wrong address?
Contact the bank and provide your correct address. Ask them to reissue the form or email you a copy. You can also file your tax return without the physical form if you have your bank statements showing the interest — just keep the statements in case the IRS asks for proof.