You owe federal income tax on the interest your Apple Savings Account earns

Any interest your money makes in a savings account is taxable income. That includes interest from an Apple Savings Account, which is held at Goldman Sachs Bank USA. The bank will send you a form called a 1099-INT each January showing how much interest you earned the previous year, and you report that amount on your federal tax return.

The tax you owe depends on your total income and tax bracket — the interest itself is not taxed at a special rate, but added to your other income. If you earned $50 in interest and you are in the 22% tax bracket, you would owe roughly $11 in federal tax on that interest (though your actual tax depends on all your income, not just the interest).

State and local income taxes also explore to savings account interest in most states. A few states — including Florida, Texas, and Wyoming — do not have state income tax, so residents there would owe only federal tax. If you live in a state with income tax, you will report the same interest amount on your state return as well.

Key Takeaways

  • Goldman Sachs Bank USA will mail or email you a 1099-INT form by January 31 showing your total interest earned in the previous year.
  • You report the interest amount on your federal tax return (Form 1040) as taxable income, and it is taxed at your regular income tax rate.
  • Most states also tax savings account interest, so check whether your state has income tax and report the same amount on your state return.
  • You do not owe taxes on the money you deposited — only on the interest the bank paid you.
  • If you earned less than $10 in interest, the bank may not send a 1099-INT, but you still owe tax on that interest if you have other income.

When the bank sends you the 1099-INT form

Goldman Sachs sends the 1099-INT to you and to the IRS by January 31 of the year after you earned the interest. If you earned interest during 2024, you will receive the form in January 2025. The form shows your name, address, Social Security number or tax ID, and the total interest paid.

You can usually view the form in your Apple Wallet or Goldman Sachs online account before the physical copy arrives. Check your account in late January to see the amount, so you know what to report even if the paper form is delayed.

How to report the interest on your tax return

When you file your federal return, you report the interest on Schedule 1 (Form 1040), which is part of the standard federal tax package. The interest goes on the line labeled "Interest" under "Income." You enter the amount from your 1099-INT.

If you use tax software (like TurboTax, H&R Block, or the IRS Free File program), the software will ask you to enter the interest amount, and it automatically puts it in the right place. If you file by hand or with a tax preparer, give them the 1099-INT form and they will handle the entry.

For your state return, follow the same process — report the interest on the state income tax form. Most states have a line for interest income that mirrors the federal form. Some states use different forms, so check your state's tax website or ask a tax preparer if you are unsure where to report it.

What happens if you do not report the interest

The IRS receives a copy of your 1099-INT at the same time you do. If you do not report the interest on your return, the IRS will notice the mismatch between what the bank reported and what you reported. This can trigger a notice asking you to explain the difference or pay the tax owed plus penalties and interest.

The penalty for not reporting income is usually 20% of the unpaid tax, plus interest that accrues daily. It is much simpler to report the interest when you file. If you made a mistake on a prior return, you can file an amended return (Form 1040-X) to correct it.

How much interest you actually earn matters

The interest rate on an Apple Savings Account changes based on the current market — it is not fixed. When rates are higher, you earn more interest and owe more tax. When rates drop, you earn less interest and owe less tax. Check your account regularly to see how much interest you have earned so far in the year, so you are not surprised by the 1099-INT.

If you are saving for a specific goal and want to understand the tax impact, you can estimate: multiply your account balance by the current interest rate, then multiply that by your tax bracket percentage. For example, $10,000 at 4% interest is $400 per year; if you are in the 22% bracket, you would owe roughly $88 in federal tax on that interest.

State tax considerations by location

Nine states have no income tax: Alaska, Florida, Nevada, South Dakota, Tennessee, Texas, Washington, Wyoming, and New Hampshire (which taxes only interest and dividends, but Apple Savings Account interest is exempt there). If you live in one of these states, you owe only federal tax on your interest.

All other states tax savings account interest as regular income. Some states offer small deductions or exemptions for interest earned by seniors or on certain types of accounts, but Apple Savings Account interest does not usually may have access to for these. Check your state's tax website or ask a tax preparer about your specific situation.

Frequently Asked Questions

Do I have to report interest if I only earned a few dollars?

Technically yes — any interest is taxable income. However, the bank only sends a 1099-INT if you earned $10 or more. If you earned less, you still owe tax on it, but you will not receive a form. Report the amount you see in your account statement.

Can I deduct anything to offset the interest I earned?

No. Interest income cannot be reduced by deductions. However, if you have other types of investment losses or deductible expenses, those may lower your overall taxable income. Talk to a tax preparer about your full financial picture.

What if I moved states during the year?

You report interest to both states on a part-year resident return. Each state taxes only the interest earned while you lived there, based on the dates you moved. Your tax software or preparer can split the interest between states if you provide the move date.

Is the interest taxed differently if I earned it in a joint account?

The 1099-INT will show the full interest amount, but you and the joint account holder split the tax responsibility based on who owns what percentage of the account. Discuss this with the other account holder and your tax preparer to make sure you each report the correct share.

What if Goldman Sachs sends me the wrong 1099-INT amount?

Contact Goldman Sachs customer service right away and ask them to issue a corrected form. They will send you a corrected 1099-INT and file a corrected copy with the IRS. Do not file your tax return until you have the correct form.