Tax documents can be confusing at best and overwhelming at worst, serving to frustrate business owners and tax professionals who want to keep the filing process as simple as possible. Are you curious about the purpose of 1099 INT forms and how to file them? If so, read on – we will try to demystify this version of federal form 1099 and explain who needs to file it and why.
What is Form 1099-INT?
Form 1099-INT is the form used to report any interest income that a taxpayer receives during a tax year. Common sources of form 1099 interest are savings accounts, checking accounts, and money market accounts. In addition to regular interest earned, sign up bonuses, incentives, or other monetary gifts provided by banking institutions are also regarded as income by the IRS and must be reported on 1099 INT forms to the IRS as well as the recipients of the money.
Filing Form 1099-INT
Generally, institutions that pay interest have two choices when it comes to filing 1099 INT forms – manually or electronically. Any institution filing more than 250 1099 forms is required to submit them electronically, although there are distinct advantages to filing electronically even if you are creating significantly fewer than 250 forms. Businesses using online services such as Etax1099.com can create a single account and enter all of their form 1099 interest payments from this one account, making the process much easier and quicker. They can also more easily avoid making mistakes by using this method. Once the information is entered, a few clicks of the mouse submit the forms to the IRS, saving time and effort. Additionally, users who submit forms online will receive E-mail confirmation and updates regarding their submissions, keeping them up-to-date and in the loop.
Recipients of Form 1099-INT
If you do happen to receive a form 1099-INT from your bank, remember to include this information on your personal tax return. Deadlines for receiving your 1099 forms are generally the last day of January, so if you don’t receive it by then, be sure to contact your bank for more information. Banks are only required to report form 1099 interest if it exceeds $10, but even if you received less than $10 in interest, you are still required by the IRS to report your interest earned.
Filing and completing form 1099-INT does not have to be difficult or complex, especially if you are using an online filing service. With the ability to input multiple payees from a single account, business owners will appreciate the ease with which they can complete this process, making it one less headache to worry about during tax season. If you do encounter any problems during the filing process, Etax1099.com provides all of its users with round the clock customer service so you can avoid contacted the IRS directly. Once your forms are filed, submission is usually complete within 24 hours, making this by far the most efficient way to handle any reports of form 1099 interest.