You will not get a 1099 on a regular checking account with no interest
A 1099 form is a tax document that reports income to the IRS. Banks send them only when you earn money from your account — specifically, when you receive interest payments. If your checking account earns no interest or earns less than $10 in a year, your bank will not send you a 1099.
The form your bank sends you is called a 1099-INT (for interest income). It appears on your tax return as taxable income, even though the amount is usually small. The threshold for banks to issue one is $10 or more in annual interest.
If you have a savings account, money market account, or certificate of deposit (CD) that earns interest, you are more likely to receive a 1099-INT. Checking accounts almost never generate enough interest to cross the $10 threshold, but it depends on the account type and the bank's interest rate.
Key Takeaways
- Banks issue 1099-INT forms only when you earn $10 or more in interest during the calendar year.
- Most checking accounts earn little or no interest, so you will not receive a 1099 for them.
- High-yield savings accounts and money market accounts are more likely to generate a 1099-INT.
- If your bank sends you a 1099-INT, you must report that interest income on your tax return.
- You should receive the 1099-INT by January 31 of the following year.
What triggers a 1099-INT from your bank
The IRS requires banks to report interest income to both you and the tax agency when the amount reaches $10 or more in a single calendar year. This is a federal reporting requirement, not a bank's choice. If you earn $9.99 in interest, you will not receive a form. If you earn $10.01, you will.
Interest is the money the bank pays you for keeping your money there. On a checking account, this is usually zero or a fraction of a cent per month. On a savings account, it may be higher depending on the account's annual percentage yield (APY). The higher the APY, the more likely you are to hit the $10 threshold.
Some banks offer promotional rates on checking accounts for a limited time. If the rate is high enough and you keep a large balance, you could earn $10 or more and receive a 1099-INT. This is rare but possible.
How to find your 1099-INT and when it arrives
Your bank will mail or email you a 1099-INT by January 31 of the year following the one in which you earned the interest. For example, interest you earn in 2024 will appear on a 1099-INT sent by January 31, 2025.
You can also log into your online banking portal and look for tax documents. Most banks have a section labeled "Tax Documents," "1099 Forms," or "Year-End Statements." If you cannot find it online, call your bank's customer service line and ask them to send you a copy or confirm whether one was issued.
Keep the 1099-INT with your tax records. You will need it when you file your tax return, and the IRS receives a copy as well. If the form shows an incorrect amount, contact your bank when ready to request a corrected form (called a 1099-INT correction).
Reporting interest income on your tax return
Interest income from a 1099-INT goes on Schedule B (Interest and Ordinary Dividends) if you file a full tax return. If you use a simplified return or your total interest is very small, the rules may differ depending on your filing status and other income.
You must report all interest income, even if you do not receive a 1099-INT. If you earned less than $10 and your bank did not send a form, you still owe tax on that interest. The IRS tracks what banks report, so discrepancies can trigger an audit notice.
If you have multiple accounts at different banks, each one may send its own 1099-INT. Add them all together when you report your total interest income on your return.
What happens if you lose or do not receive your 1099-INT
If your bank sent a 1099-INT but you did not receive it, contact the bank and request a duplicate. Provide your account number and the year in question. The bank can resend it by email or mail, usually within a few business days.
If you filed your tax return without the 1099-INT and later received it, you may need to file an amended return if the interest amount was significant. Use Form 1040-X (Amended U.S. Individual Income Tax Return) to correct your filing. The IRS will cross-check what the bank reported, so it is better to amend voluntarily than to wait for them to contact you.
If you cannot locate a 1099-INT and the bank confirms it was issued, the IRS has a copy. You can still file your return and report the interest based on your account statements. Keep records of your communications with the bank in case you need to prove you tried to obtain the form.
Accounts that are more likely to generate a 1099-INT
High-yield savings accounts often pay 4% to 5% APY or higher, depending on market conditions. If you keep $2,000 or more in such an account for a full year, you will likely earn $10 or more and receive a 1099-INT.
Money market accounts and certificates of deposit (CDs) also generate interest income. CDs in particular can produce significant interest, especially if you hold a large balance or the CD has a long term.
Regular savings accounts at traditional banks typically pay less than 1% APY, so you would need a very large balance to earn $10 in interest. Checking accounts almost never reach this threshold unless the bank is running a special promotional offer.
Frequently Asked Questions
Do I have to report interest income if I did not get a 1099-INT?
Yes. You must report all interest income on your tax return, even if your bank did not send a 1099-INT because the amount was under $10. The IRS expects you to track this on your own using your account statements.
Can I avoid getting a 1099-INT by closing my account?
No. The bank reports interest based on what you earned during the calendar year, not on whether the account is open at year-end. If you earned $10 or more in interest between January 1 and December 31, you will receive a 1099-INT regardless of when you closed the account.
What if my 1099-INT shows the wrong amount?
Contact your bank when ready and ask for a corrected form. The bank will issue a 1099-INT correction (marked as a correction on the form itself) and send it to you and the IRS. File your tax return using the corrected amount.
Is interest from a joint account reported on one 1099-INT or two?
The bank will issue one 1099-INT in the name and Social Security number of the account owner listed first on the account. If both owners should report the interest, you will need to contact the bank to request a separate form or to clarify how to split the income on your individual returns.
Do I need to pay estimated taxes on interest income?
Only if your total tax liability for the year is high enough. For most people with small interest income, the tax is withheld or paid when they file their annual return. Consult a tax professional if you have significant interest income or other sources of income that might require quarterly estimated tax payments.