How to Find Interest Income Without a 1099-INT

Interest income is money earned from savings accounts, certificates of deposit (CDs), bonds, and other interest-bearing investments. Banks and financial institutions typically issue a Form 1099-INT if total interest earned exceeds $10 in a year. However, if earnings fall below the reporting threshold or come from less traditional sources, a 1099-INT may not be issued.

Even without a 1099-INT, all taxable interest must be reported on a tax return. Understanding how to locate and verify this income ensures accurate reporting and helps prevent IRS issues.

Identifying Potential Sources

Interest income can come from various financial products, even if a 1099-INT is not issued. Identifying all sources ensures accurate reporting. Common sources include savings accounts, certificates of deposit, and bonds.

Savings Accounts

Banks and credit unions pay interest on savings account balances, with rates varying by institution and account type. Online banks often offer higher yields than traditional banks. Interest is typically compounded daily, monthly, or quarterly, affecting total earnings.

For example, a savings account with a 2.00% annual percentage yield (APY) that compounds monthly will generate approximately $201.61 in interest on a $10,000 balance over a year. Even if total interest is below $10 and no 1099-INT is issued, these earnings must still be reported. Reviewing account statements or logging into online banking helps track interest earned. Some banks also provide year-end summaries consolidating this information.

Certificates of Deposit

A certificate of deposit (CD) is a time deposit offering a fixed interest rate over a set period. Unlike savings accounts, CDs require funds to be locked in for a specific term, ranging from a few months to several years. Interest may be credited periodically or paid in full at maturity.

For instance, a one-year CD with a 3.50% interest rate and a $5,000 deposit will earn approximately $175 upon maturity. Longer-term CDs often offer higher rates, but early withdrawals can result in penalties that reduce earnings.

Brokered CDs, purchased through investment firms, may not issue a 1099-INT if interest is reinvested or structured differently. Checking investment account statements or consulting the issuing bank ensures all interest earnings are accounted for when filing taxes.

Bonds and Treasuries

Bonds, including U.S. Treasury securities, municipal bonds, and corporate bonds, generate interest income that may not always be reported on a 1099-INT. Treasury bonds pay interest semiannually, while zero-coupon bonds accrue interest over time without periodic payments.

Municipal bonds may offer tax-exempt interest at the federal level and sometimes at the state level, depending on the issuing location. Corporate bonds, however, generate taxable interest that must be included in annual income calculations.

For example, a $10,000 Treasury bond with a 4.00% coupon rate will generate $400 in annual interest, paid in two $200 installments. TreasuryDirect and brokerage firms provide year-end statements summarizing these payments, which serve as documentation for tax reporting.

Gathering Statements and Documents

Tracking interest income starts with reviewing financial accounts where earnings have accumulated. Many institutions provide electronic statements accessible through online banking or investment portals, often consolidating interest payments in year-end summaries. If digital records are unavailable, requesting paper copies ensures no income is overlooked.

Some financial institutions categorize interest earnings separately in account statements, making it easier to identify taxable amounts. Others require a more detailed review, especially when multiple transactions occur throughout the year. Checking transaction histories for deposits labeled as “interest earned” helps distinguish these payments from other account activity.

Brokerage accounts may include interest from money market funds or sweep accounts, which do not always generate a 1099-INT. Reviewing monthly or quarterly statements ensures all interest income is accounted for.

Foreign bank accounts add complexity, as interest earned overseas may not be reported to the IRS but remains taxable for U.S. residents. Reviewing foreign account statements and converting earnings to U.S. dollars using the applicable exchange rate is necessary. Taxpayers with foreign accounts exceeding $10,000 at any time during the year must file an FBAR (FinCEN Form 114), even if no 1099-INT is issued.

Verifying Calculations Through Reconciliation

Ensuring accurate reporting requires reconciling figures from different sources. This involves cross-referencing financial records with personal calculations before filing a tax return. Even small miscalculations can lead to IRS notices or underpayment penalties.

Summing all interest amounts recorded on bank statements, brokerage reports, and other financial documents helps confirm accuracy. Since interest may be credited periodically, checking that each entry aligns with the expected accrual schedule is important. If a savings account compounds monthly, adding up the monthly interest postings should match the stated APY. Any differences may indicate an omission or misrecorded transaction.

For Treasury securities or corporate bonds, interest payments should match the expected coupon rate and face value. If a bond pays semiannually, the total received over the year should align with the stated yield. Differences may arise due to reinvestment programs or accrued interest on secondary market purchases. Reviewing the original purchase confirmation and year-end interest summary clarifies the correct taxable amount.

If multiple accounts exist across different banks or financial institutions, consolidating all interest figures into a single spreadsheet provides a clearer overview. This allows for a final check against any IRS-reported amounts if a partial 1099-INT is received. The IRS matches reported income with third-party filings, so ensuring the total interest matches expectations reduces the likelihood of audit triggers. If a discrepancy is found, contacting the financial institution for an updated statement or correction may be necessary.

Reporting Requirements for Income

Taxpayers must report all taxable interest income on their federal return, even if they do not receive a 1099-INT. If total interest exceeds $1,500, it must be detailed on Schedule B (Form 1040), listing each payer and amount earned. The IRS cross-checks reported figures against financial institution filings, so failing to disclose interest income can result in penalties.

Certain interest earnings may also be subject to state tax, depending on residency and the source of income. U.S. Treasury securities are exempt from state and local taxation, but interest from corporate bonds or out-of-state municipal securities may be taxable at the state level. Reviewing state tax filing requirements ensures compliance.

Interest income can also affect overall tax liability. High-income filers may be subject to the 3.8% net investment income tax (NIIT) under Internal Revenue Code 1411 if modified adjusted gross income (MAGI) exceeds $200,000 for single filers or $250,000 for married couples filing jointly. This surtax applies to interest, dividends, and other passive income sources, increasing overall tax exposure.