You get a tax form from your savings account only if you earned $10 or more in interest during the year
The form is called a 1099-INT, and your bank sends it to you and to the IRS by January 31 each year. If you earned less than $10 in interest, your bank does not send a form, but you still owe tax on that interest — you have to report it yourself on your tax return.
The $10 threshold is a federal rule that applies to all banks and savings institutions. Some states have their own lower thresholds, so check with your state tax authority if you live in a state with an income tax. The interest amount on the form is what the bank paid you, not what you withdrew or deposited.
You will receive the 1099-INT in the mail or electronically if you signed up for e-delivery. The form shows the account number, the bank's name and tax ID, and the total interest paid. If you have multiple savings accounts at the same bank, they may combine the interest on one form or send separate forms — this varies by institution.
Key Takeaways
- Banks send a 1099-INT form only when interest earned reaches $10 or more in a calendar year.
- Interest under $10 is not reported on a form, but you must still report it on your tax return.
- The 1099-INT arrives by January 31 and goes to both you and the IRS.
- You report the interest amount from the 1099-INT on Schedule 1 (Form 1040) or on your state return if required.
How interest gets reported to the IRS
When your bank sends the 1099-INT to the IRS, the IRS already knows how much interest you earned before you file your return. This is why underreporting or omitting interest is caught quickly — the IRS matches what you report against what the bank reported.
The IRS does not automatically add the interest to your refund or bill. You have to include it on your return. If you do not report it and the IRS finds the mismatch, you will receive a notice asking you to explain the difference, and you may owe back taxes plus penalties and interest.
If you moved during the year or changed your address with the bank after interest was paid, the 1099-INT may go to an old address. Contact your bank immediately if you do not receive it by early February, because you need the exact amount to file accurately.
What happens if you earn interest but get no form
If you earned interest but your bank did not send a 1099-INT, you still report the interest on your return. Look at your account statements from December and January to find the total interest paid during the tax year. Add it to Schedule 1 of Form 1040 under "Interest" just as you would if you had received a form.
Some banks are slow to send forms or may make errors. If you believe your bank should have sent one and did not, call the bank's tax department and ask them to issue a corrected form or a statement showing the interest paid. Keep a record of this request in case the IRS contacts you later.
High-yield savings accounts and money market accounts also generate 1099-INT forms if interest exceeds $10. The same $10 threshold and reporting rules apply, even though these accounts pay more interest than traditional savings accounts.
How to report the interest on your tax return
You report interest from a 1099-INT on Schedule 1 (Form 1040) under "Interest." Write the name of the bank and the interest amount on the line provided. If you have interest from multiple banks, you can list each one separately or combine them into a single entry — the IRS accepts both methods.
If the total interest from all sources is $1,500 or less, you report it on Schedule 1. If it exceeds $1,500, you must also file Schedule B (Interest and Ordinary Dividends) and list each source separately. Schedule B requires more detail but follows the same basic process.
The interest is taxed as ordinary income at your regular tax rate. It does not get special treatment like capital gains or may have access to dividends. If you are in a higher tax bracket, the interest pushes your income up and may increase your tax bill.
Corrected forms and what to do if the amount is wrong
If your bank sends you a 1099-INT and then realizes the amount was incorrect, they will send you a corrected 1099-INT marked "CORRECTED" at the top. Use the corrected form, not the original, when you file your return. The bank also sends the corrected version to the IRS.
If you receive a corrected form after you have already filed, you do not need to amend your return unless the difference is significant. The IRS will match the corrected form they receive from the bank against what you reported. If there is a small discrepancy, the IRS usually does not pursue it, but if the difference is large, you may receive a notice.
If you believe the 1099-INT is wrong and the bank will not correct it, you can still file your return with the amount you know is correct and include a note explaining the discrepancy. Keep copies of your account statements and any correspondence with the bank to support your position if the IRS asks.
Joint accounts and who reports the interest
If you have a joint savings account, the bank reports the full interest amount on a single 1099-INT. The form goes to the first account holder listed, but both owners are responsible for reporting their share of the interest on their own tax returns.
You and the other account holder must decide how to split the interest. If you each own 50 percent, you each report 50 percent on your return. If the split is different, you report your actual share. The bank does not tell you how to split it — that is between you and the other owner.
If you cannot agree on the split, each of you can report the full amount and let the IRS sort it out, but this often triggers notices to both accounts. It is simpler to agree on the split in advance and keep a record of your agreement.
Tax-advantaged accounts and whether they send forms
Roth IRAs and Traditional IRAs do not send 1099-INT forms for interest earned inside the account. The interest is sheltered from tax while it sits in the account. You only report income when you withdraw money from the account, and the form you receive depends on the type of withdrawal.
529 college savings plans also do not send 1099-INT forms for interest earned in the account. Interest is tax-free if you use the money for may have access to education expenses. If you withdraw money for non-may have access to expenses, you report the earnings portion on your return, but the plan administrator sends you a different form (Form 1099-Q) to help you calculate what is taxable.
Regular savings accounts held outside retirement plans always generate 1099-INT forms if interest exceeds $10, regardless of your age or income.
Frequently Asked Questions
Do I have to report interest if I earned less than $10?
Yes. The $10 threshold only determines whether the bank sends a form. You must report all interest on your tax return, even if it is $1 or $5. Look at your account statements to find the exact amount and add it to Schedule 1.
What if I have savings accounts at multiple banks?
Each bank sends its own 1099-INT if interest exceeds $10. You report each one on your return. If total interest from all sources is $1,500 or less, list them on Schedule 1. If it exceeds $1,500, use Schedule B and list each bank separately.
Can I deduct any expenses against savings account interest?
No. Interest income cannot be reduced by expenses. You report the full amount the bank paid you. You cannot deduct account fees, maintenance charges, or anything else against the interest.
What if the bank sent the 1099-INT to the wrong address?
Contact the bank and ask them to issue a duplicate or corrected form to your current address. If you do not receive it by mid-February, use your account statements to find the interest amount and report it on your return anyway. Keep records of your request to the bank in case the IRS asks.
Does interest from a money market account get reported the same way?
Yes. Money market accounts generate 1099-INT forms using the same $10 threshold and reporting rules as regular savings accounts. Report the interest on Schedule 1 the same way you would for a savings account.