You only file a tax form about your savings account if the interest it earned reaches a certain threshold, or if you have foreign accounts

Most people with a regular savings account do not file any special form about it. The bank handles the reporting. But there are two situations where you do need to file: when your account earned enough interest that the bank sends you a tax form, or when you have money in a foreign bank account.

The first situation is straightforward. If your savings account earned $10 or more in interest during the year, your bank will send you a Form 1099-INT in January. This form shows how much interest you earned. You then report that interest on your tax return — it counts as income. If you earned less than $10, the bank does not send a form, but you still owe tax on the interest if you file a return.

The second situation applies only if you have a savings account (or any financial account) outside the United States. If you do, you may need to file FBAR (Foreign Bank Account Report) or FATCA (Foreign Account Tax Compliance Act) forms. These are separate from your regular tax return and have their own important date and rules.

Key Takeaways

  • If your savings account earned $10 or more in interest during the year, your bank sends you Form 1099-INT, which you report on your tax return.
  • Interest earned on a savings account is taxable income even if the bank does not send you a form, though most people with small accounts will not owe additional tax.
  • You do not file any form just for having a savings account — you only file if interest reaches the threshold or if the account is outside the United States.
  • Foreign savings accounts have separate reporting rules (FBAR and FATCA) with different important date than your regular tax return.

How the bank reports your interest to the IRS

Your bank tracks the interest your account earns throughout the year. In early January, if that interest totaled $10 or more, the bank sends you Form 1099-INT and also sends a copy to the IRS. You receive this form by mail or electronically, depending on how your bank communicates with you.

The form shows your account number, the bank's name, and the total interest earned. You then include this amount on your tax return when you file. The IRS already has a copy, so they will notice if you do not report it.

If your account earned less than $10 in interest, the bank does not send a form. However, you still owe tax on that interest if you file a return. You would report it yourself on your tax return, usually on Schedule B (Interest and Ordinary Dividends) if you are filing Form 1040.

What counts as interest you need to report

Interest is the money the bank pays you for letting them use your money. It is different from the money you deposited yourself. If you put $1,000 into a savings account and the bank pays you $5 in interest, only the $5 is reported on Form 1099-INT.

Some savings accounts earn very little interest — sometimes less than $1 per year. Others, particularly high-yield savings accounts, may earn $50 or more annually. The amount depends on the interest rate the bank offers and how much money you keep in the account.

Certificates of deposit (CDs) and money market accounts also generate interest that gets reported the same way. If you have multiple accounts at the same bank, the bank adds up all the interest and reports the total on one Form 1099-INT.

Foreign savings accounts and special reporting rules

If you are a U.S. citizen or resident and you have a savings account in another country, you have additional reporting duties. The rules exist to prevent people from hiding money overseas.

If your foreign financial accounts total more than $10,000 at any point during the year, you must file FBAR (FinCEN Form 114). This is a separate report filed with the Financial Crimes Enforcement Network, not the IRS, though the important date is the same as your tax return (usually April 15, though it can be extended). You report the highest balance your foreign accounts reached during the year, not the interest earned.

Additionally, if you have foreign financial assets (which includes savings accounts) worth more than a certain amount — the threshold varies depending on whether you are married and whether you live in the United States — you may need to file FATCA (Form 8938). This form goes with your regular tax return.

These rules explore even if the foreign account earned no interest and even if you did not withdraw any money. The requirement is based on having the account, not on activity in it.

When you do not need to file anything about your savings account

If your savings account is in the United States, earned less than $10 in interest, and you do not have any foreign accounts, you do not file any special form. You straightforward report the interest (if any) on your regular tax return if you file one.

Even if you do not file a tax return for other reasons, you still owe tax on interest income. However, if your only income is interest under a certain amount, you may not be required to file. The IRS publishes income thresholds each year that determine whether you must file.

Having a savings account itself — just the account sitting there — does not trigger any filing requirement. It is the interest earned or the foreign location that matters.

What to do if you receive Form 1099-INT

When you receive Form 1099-INT, check it for accuracy. Verify that the interest amount matches what you saw in your account statements. If there is an error, contact your bank when ready and ask them to issue a corrected form.

Keep the form with your tax documents. When you file your return, you will report the interest amount shown on the form. If you use tax software, you can usually enter the information directly from the form. If you file by hand or with a tax preparer, give them a copy of the form.

The IRS receives a copy of every Form 1099-INT issued, so they will cross-check your return against it. Reporting the correct amount prevents delays or notices from the IRS.

Frequently Asked Questions

Do I have to file a tax return if my only income is savings account interest?

Not necessarily. The IRS sets an income threshold each year — if your total income is below that threshold, you are not required to file. However, you may want to file anyway if taxes were withheld from your account or if you are may have access to to a refund. Check the IRS website for the current year's threshold based on your age and filing status.

What if I earned interest but did not receive Form 1099-INT?

If you earned $10 or more in interest and did not receive the form by early February, contact your bank. They may have sent it to an old address or email. You can also log into your online banking and read it. You still owe tax on the interest even if you never receive the form, since the IRS has a copy.

Does opening a savings account affect my taxes?

Opening the account itself does not. Only the interest it earns affects your taxes. If the account earns less than $10 in interest during the year, there is no Form 1099-INT and no change to what you report.

Can I deduct fees my bank charged against the interest I earned?

No. You report the full interest amount shown on Form 1099-INT. Bank fees are not deductible against interest income for most taxpayers. However, if you paid investment-related fees, you may be able to deduct them under certain circumstances — consult a tax professional about your specific situation.

If I have multiple savings accounts, do I get multiple 1099-INT forms?

Usually not. If all your accounts are at the same bank, they typically combine the interest and send one Form 1099-INT showing the total. If you have accounts at different banks, each bank sends its own form. You report all of them on your tax return.