Form 1099-INT is sent to the taxpayer to show interest income earned during the tax year. Different types of interest received may include savings bond interest, checking and savings account interest, and/or interest earned on Treasury bills.
Where to enter Form 1099-INT?
To enter, go to:
- 1099-DIV, INT, OID - Interest Income, Dividends, and Distributions
You will be prompted to select the form and type of income you need to report. Select the appropriate form and enter the information from your original form.
Box 1 Interest Income is reported as taxable interest on the tax return.
Box 2 Early Withdrawal Penalty is any interest or principal forfeited when the taxpayer withdrew the money before the maturity date of the obligation.
Box 3 Interest Income on U.S. Savings Bonds and Treasury Obligations is usually reported as taxable interest on the federal tax return but is typically not taxable at the state and local level and may be excluded from income on the state tax return.
Box 4 Federal Tax Withholdings include backup withholdings withheld from the interest paid.
Box 5 Investment Expenses indicates the taxpayer's share of any investment expenses from a single class REMIC. The amount is included in Box 1 and is for informational purposes only. This is no longer allowed as a deductible expense.
Box 6 Foreign Tax Paid (Withheld) out of the interest paid on the investment.
Box 7 Foreign Country or U.S. Possession - Not Supported
Box 8 Tax-Exempt Interest shows the tax-exempt interest paid. This amount is reported on Form 1040 Line 2a.
Box 9 Specified Private Activity Bond Interest is included in the Box 8 amount but is subject to the Alternative Minimum Tax and is included on Form 6251.
Box 10 Market Discount shows, for covered securities, the market discount that accrued on the debt instrument during the year. Market discount generally occurs when a covered security is acquired at less than face value of a bond and the stated redemption price of a bond at maturity is more than the basis in the bond at the time it is acquired. This amount is added to the Box 1 interest reported on Schedule B. (Note that market discount on a tax-exempt security is included with taxable interest income.)
Box 11 Bond Premium shows, for covered taxable securities, the bond premium amount for the year. Bond premium generally occurs when a covered security is acquired for an amount greater than the face value of the bond and the stated redemption price of a bond at maturity is less than the basis in the bond at the time it was acquired. This amount reduces taxable interest and is notated "ABP Adjustment" on Schedule B.
Box 12 Bond Premium on U.S. Treasury Obligations shows the bond premium for the year for covered U.S Treasury securities. This amount reduces taxable interest and is notated "ABP Adjustment" on Schedule B.
Box 13 Bond Premium on Tax-Exempt Bond shows the bond premium for the year for covered non-taxable securities.
Box 14 is for informational purposes and isn't entered anywhere in the tax return.
Boxes 15 - 17 show state withholding information related to the income.
The program will carry the figures that you enter to the appropriate places on your return.