You get a tax form from your savings account only if you earned interest

Most savings accounts produce a tax form, but only if the bank paid you interest during the year. The form is called a 1099-INT, and it reports how much interest you earned. If your account earned no interest — or so little that it rounds to zero — you will not receive one.

The bank sends the 1099-INT to you and to the IRS. You use it to report that interest income on your tax return. Even if you do not receive a form, you are still required to report any interest you earned, so keeping your own records is important.

Key Takeaways

  • Banks send a 1099-INT form only when your savings account earned interest during the year.
  • The form arrives by January 31st each year and reports the total interest paid to your account.
  • You must report this interest income on your tax return, even if the amount is small or you did not receive a form.
  • High-yield savings accounts and money market accounts also produce 1099-INT forms if they earn interest.
  • You do not owe taxes on the principal (the money you deposited), only on the interest the bank paid you.

When the bank sends you a 1099-INT

Banks are required to send a 1099-INT by January 31st of the year following the one in which you earned the interest. So interest you earned in 2024 will arrive on a form in January 2025. The form shows your name, address, Social Security number or tax ID, and the total interest paid to that account during the year.

You will receive the form by mail or, if you enrolled in electronic delivery, by email or through your online banking portal. Some banks let you read it directly from your account. If you do not see it by early February, contact your bank to request a copy.

How much interest triggers a tax form

Banks must send a 1099-INT if the interest earned reaches $10 or more during the calendar year. Below that threshold, the bank is not required to send one, but you still owe tax on whatever interest you earned. This is why keeping your own records matters — your bank statement will show the interest even if no form arrives.

Interest rates on savings accounts vary widely. A high-yield savings account might pay 4% or 5% annually, while a traditional savings account might pay less than 1%. The amount of interest you earn depends on both the rate your bank offers and how much money you keep in the account.

What to do with your 1099-INT at tax time

When you file your tax return, you report the interest shown on your 1099-INT as income. On a federal return, this goes on Schedule 1 (Form 1040) or directly on your return, depending on the tax software or form you use. The IRS receives a copy of your 1099-INT, so your reported amount should match what the bank reported.

If you have multiple savings accounts at different banks, you will receive a separate 1099-INT from each one. You add up all the interest from all the forms and report the total. If you earned interest at one bank but not another, only the bank that paid interest sends a form.

Tax forms from other savings-like accounts

A money market account works like a savings account and produces a 1099-INT if it earns interest. A certificate of deposit (CD) also produces a 1099-INT, even if you have not withdrawn the money yet — you owe tax on the interest in the year it was earned, not when you withdraw it. Some CDs let you defer interest until maturity, but you still report it when earned.

A regular checking account rarely earns interest, so most checking accounts do not produce a 1099-INT. However, some banks offer interest-bearing checking accounts, which do produce forms if interest is paid.

If you lost your 1099-INT or never received one

Contact your bank and request a duplicate copy. Banks keep records and can reissue forms. If your bank cannot locate it, ask for a written statement showing the interest paid to your account during the year — you can use that to report the income on your return.

If you earned interest but the bank did not send a form because the amount was under $10, use your bank statement to find the exact interest earned. Write down the amount and report it on your return. The IRS may not have a record of this small amount, but you are still required to report it.

How interest income affects your taxes

Interest from a savings account is taxed as ordinary income at your regular tax rate. It is not taxed at a lower rate like some investment income. If you earned $500 in interest and you are in the 22% tax bracket, you would owe approximately $110 in federal tax on that interest (before any deductions or credits that might reduce your overall tax bill).

Some people worry that reporting interest income will affect their may be able to access for certain benefits or credits. The impact depends on your total income and which programs you use. If you receive means-tested benefits, report the interest accurately and check with the benefit program about how it affects you.

Frequently Asked Questions

Do I have to report interest if I did not get a 1099-INT?

Yes. If your account earned any interest, you must report it on your tax return, even if the bank did not send a form because the amount was under $10. Check your bank statements for the interest earned and report the total.

What if the 1099-INT shows the wrong amount?

Contact your bank when ready and ask them to issue a corrected form (called an amended 1099-INT). Keep records of your account statements to show what the correct amount should be. Once the bank sends the corrected form, file an amended tax return if you already filed.

Can I deduct expenses to reduce my interest income?

No. Interest income from a savings account cannot be reduced by deductions. You report the full amount as income. However, you may be able to deduct investment expenses in other situations — this does not explore to regular savings accounts.

Do I need to report interest from a joint account?

The bank reports all interest to the Social Security number or tax ID listed as the account owner. If the account is joint, ask your bank whose number is on file. That person receives the 1099-INT and reports the interest. You and the other owner should discuss how to split the income for tax purposes if you contributed equally.

What if I closed my savings account during the year?

You still receive a 1099-INT for any interest earned before you closed it. The form covers the calendar year, not the time you held the account, so you report all interest earned from January through December, regardless of when you closed the account.