What is Form 1099-INT?
Your bank, credit union, or brokerage sends a 1099-INT when you earn $10 or more in interest during the year. It reports taxable interest, tax-exempt interest, early withdrawal penalties, and any federal withholding.
SupportedKey Boxes
| Box | Description | Where it flows |
|---|---|---|
| Box 1 | Interest income (taxable) | Schedule B Part I → Form 1040 Line 2b |
| Box 2 | Early withdrawal penalty | Schedule 1 Line 18 (above-the-line deduction) |
| Box 3 | U.S. Treasury interest | Schedule B (included in taxable total) |
| Box 4 | Federal income tax withheld | Form 1040 Line 25b |
| Box 8 | Tax-exempt interest | Form 1040 Line 2a (informational) |
| Box 9 | Private activity bond interest | Form 6251 Line 2g (AMT preference item) |
| Box 10 | Market discount | Schedule B (reclassified as interest income) |
| Box 11 | Bond premium | Reduces taxable interest |
How PaisaTax Handles It
- Upload or manual add — one slot per payer/institution
- Aggregation: All Box 1 values aggregate per owner, then flow to Schedule B and Form 1040 Line 2b
- Tax-exempt interest (Box 8) flows to Form 1040 Line 2a — not taxed but reported
- Early withdrawal penalties (Box 2) create an above-the-line deduction on Schedule 1
Common Situations
- Multiple bank accounts: Add one slot per institution. PaisaTax sums all interest automatically.
- Treasury bonds (Box 3): Included in taxable interest. State-exempt but federally taxable.
- Bond premium (Box 11): Reduces taxable interest. The engine adjusts the Schedule B total automatically.