You must report all savings account interest on your federal tax return, even if the bank doesn't send you a form

The IRS requires you to report every dollar of interest your savings account earns, regardless of the amount. Banks send a Form 1099-INT only when interest reaches $10 or more in a calendar year, but that $10 threshold is not a reporting threshold for you — it is only when the bank has to mail the form. If you earned $3 in interest and received no 1099-INT, you still owe the IRS that $3 on your return.

Interest counts as taxable income in the year you earned it, not when you withdraw the money. A high-yield savings account earning 4% or 5% annually will generate a 1099-INT almost every year. Even money market accounts and certificates of deposit (CDs) produce interest you must report. The only exception is interest in an IRA, Roth IRA, or other tax-sheltered account — that interest stays inside the account and is not reported annually.

Key Takeaways

  • Report all savings interest on your tax return even if you did not receive a Form 1099-INT from your bank.
  • Banks only mail a 1099-INT when interest reaches $10 or more, but you report any amount earned.
  • Interest is taxable in the year you earned it, not the year you withdrew the money.
  • If you received a 1099-INT, the amount on line 1 is what you report on your Form 1040 Schedule 1 or directly on your return depending on your filing method.
  • Interest earned in tax-sheltered accounts like IRAs and Roth IRAs does not need to be reported annually.

How to find your interest amount if you didn't get a 1099-INT

Log into your bank's website or app and look for a year-end statement or interest summary. Most banks show total interest earned in a calendar year somewhere in the account details or in a downloadable annual statement. If you cannot find it online, call your bank's customer service line and ask for the total interest paid to your account in the tax year you are filing for.

Write down the exact amount and keep that record with your tax documents. You will enter this figure on your tax return even though you have no 1099-INT to attach. The IRS cross-checks 1099-INT forms filed by banks, so if you received one, make sure the amount matches what the bank reported — discrepancies can trigger a notice.

What to do if you received a Form 1099-INT

The bank will mail you a 1099-INT by January 31 if you earned $10 or more in interest during the previous calendar year. You will receive Copy B (for your records) and Copy C (for your state tax return if you file one). The form shows the interest amount on line 1. If you have accounts at multiple banks, you may receive several 1099-INT forms — you must report the total from all of them.

When you file your federal return, enter the total interest from all your 1099-INT forms on Schedule 1 (Form 1040), line 8b, or directly on line 8b of the Form 1040 itself if you are using the short form. If you are using tax software, it will prompt you to enter this amount and will place it in the correct location automatically. Keep a copy of each 1099-INT with your tax records for at least three years.

Interest from joint accounts and accounts held by minors

If you own a savings account jointly with another person, the bank reports the full interest amount on a 1099-INT to whoever is listed first on the account, or sometimes splits it between both owners. Check your 1099-INT carefully — if your name is on the account but the form shows all the interest under your spouse's or co-owner's name, you may need to contact the bank to request a corrected form or to agree with your co-owner on how to split the income on your separate returns.

If you have a savings account for a minor child, the interest is taxable to the child, not to you as the parent. The bank will issue a 1099-INT in the child's name and Social Security number. The child must report this interest on their own tax return if they file one, or you may be able to report it on your return under certain conditions — this depends on the child's total income and your filing status. Consult a tax professional if the child's interest is substantial.

How interest income affects your tax bill

Interest is taxed as ordinary income at your regular tax rate, which means a dollar of interest is taxed the same way as a dollar of wages. If you are in the 22% tax bracket, $100 in interest will increase your federal income tax by $22. If you are retired and living on a fixed income, even small amounts of interest can push you into a higher tax bracket or affect other tax benefits you receive, such as Social Security taxation or Medicare premiums.

Some people with very low income may not owe federal income tax at all, but they still must report the interest. If your only income is $500 in savings interest and you are single, you do not owe tax (the standard deduction for 2024 is higher), but you should still file a return to claim any refundable credits you may be due, such as the Earned Income Tax Credit.

Correcting a mistake on a 1099-INT

If the amount on your 1099-INT is wrong — for example, the bank credited interest to the wrong account or double-counted — contact the bank immediately and ask for a corrected form. The bank will issue a corrected 1099-INT marked "CORRECTED" and will also send a corrected copy to the IRS. You must file the corrected amount on your tax return.

If you already filed your return with the wrong amount and the bank later sends you a corrected 1099-INT, you will need to file an amended return (Form 1040-X) to correct your reported interest. Do this as soon as you discover the error, because the IRS will eventually receive the corrected 1099-INT from the bank and will notice the discrepancy.

Interest from CDs, money market accounts, and other savings products

All interest-bearing accounts produce taxable interest that you must report. A certificate of deposit (CD) that matures and pays interest is reported the same way as a savings account. A money market account earns interest that is reported on a 1099-INT. Even if you reinvest the interest back into the account instead of withdrawing it, you still owe tax on it in the year it was earned.

If you have a CD that pays interest at maturity rather than monthly, the interest is taxable in the year the CD matures and you receive the payment, not in the years you held the CD. For example, a five-year CD purchased in 2020 and maturing in 2025 will produce a 1099-INT in 2025 for all the interest earned over those five years.

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 you a 1099-INT form. You must report all interest on your tax return, even $1. Keep your bank statement as proof of the amount.

What if I have multiple savings accounts at different banks?

Add up the interest from all accounts and report the total on your return. You will receive a separate 1099-INT from each bank if any individual account earned $10 or more. If one account earned $8 and another earned $7, you report $15 total even though you received no 1099-INT forms.

Is interest from a savings account in a Roth IRA reported separately?

No. Interest earned inside any IRA, Roth IRA, or other tax-sheltered retirement account is not reported annually. You only report withdrawals from these accounts when you take money out, and the tax treatment depends on the account type and your age.

What happens if I don't report interest income?

The IRS receives a copy of every 1099-INT filed by banks. If your return does not include the interest the bank reported, the IRS will send you a notice and may assess additional tax, penalties, and interest. It is far easier to report the interest when you file than to deal with an IRS notice later.

Can I deduct any expenses against my interest income?

No. Interest income is reported in full with no deductions. You cannot deduct fees your bank charged or money you spent to earn the interest. Interest is simply added to your other income and taxed at your regular rate.