Instructions for Recipient - Interest Income - Box 1 to Box 6 - Nominees and Related Notes

Sep 19, 2026

Recipient-focused tax instructions explaining how to report interest income using Form 1099-INT. It details what each box covers, including taxable and exempt interest, backup withholding, foreign tax, early-withdrawal penalties, and shares of investment expenses. The text also explains nominee recipients when another person’s amounts are included, and provides filing and reporting requirements. Additional sections begin for dividends and broker transaction proceeds.

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Instructions for Recipient - Interest Income

Box 1 - Box 6

Nominees

Instructions for Recipient - Dividends and Distributions

Caution and dividend boxes

Capital gain distribution boxes

Instructions for Recipient - Proceeds From Broker and Barter Exchange Transactions

Reporting overview

Column 1a and Column 1b

Instructions for Recipient – Interest Income Box 1. Shows interest paid to you during the calendar year by the payer. This does not include interest shown in box 3. If you receive a Form 1099-INT for interest paid on a tax-exempt obligation, please see the instructions foryour income tax return. Box 2. Shows interest or principal forfeited because of early withdrawal of time savings. You may deduct this on the "Penalty on early withdrawal of savings" line of Form 1040. Box 3. Shows interest on U.S. Savings Bonds, Treasury bills, Treasury bonds, and Treasury notes. This may or may not be all taxable. See Pub. 550, Investment Income and Expenses. This interest is exempt from state and local income taxes. This interest is not included in box 1. Box 4. Shows backup withholding. For example, persons not furnishing their taxpayer identification number to the payer become subject to backup withholding at a 31% rate. See Form W-9, Request for Taxpayer Identification Number and Certification, for information on backup withholding. Include this amount on your income tax return as tax withheld. Box 5. Any amount shown is your share of investment expenses of a single-class REMIC. If you file Form 1040, you may deduct these expenses on the "Other expenses" line of Schedule A (Form 1040) subject to the 2% limit. This amount is included in box 1. Box 6. Shows foreign tax paid. You may be able to claim this tax as a deduction or a credit on your Form 1040. Seeyour Form 1040 instructions. Nominees: If your Federal identification number is shown on this form and the form includes amounts belonging to another person, you are considered a nominee recipient. You must file Form 1099-INT for each of the other owners showing the income allocable to each. You must also furnish a Form 1099-INT to each of the other owners. File Form(s) 1099-INT with Form 1096, Annual Summary and Transmittal of U.S. Information Returns, with the Internal Revenue Service Center for your area. On each Form 1099-INT, list yourself as the "payer" and the other owner as the "recipient." On Form 1096, list yourself as the "filer." A husband or wife is not required to file a nominee return to show amounts owned by the other. Instructions for Recipient – Dividends and Distributions Caution: If an amount appears inbox 2a, you must file Form 1040. You may not file Form 1040A. Box 1. Ordinary dividends, which include any net short-term capital gains from a mutual fund, are fully taxable. Include this amount on the "Ordinary dividends" line of Form 1040 or 1040A. Also report it on Schedule B (Form 1040) or Schedule 1 (Form 1040A), as appropriate. This amount includes any amount shown in box 5. The amount shown may be a distribution from an employee stock ownership plan (ESOP). Report it as a dividend on your income tax return, but treat it as a plan distribution, not as investment income, for any other purpose. Box 2a. Total capital gain distributions (long-term) from a regulated investment company or real estate investment trust. Amounts shown in boxes 2b, 2c, and 2d are included in box 2a. If no amount is shown in boxes 2b-2d and your only capital gains and losses are capital gain distributions, see the Form 1040 instructions for the "Capital gain or (loss)" line. If any amount is shown in boxes 2b-2d, report the amount in box 2a on Schedule D (Form 1040), PartI. Box 2b. 28% rate gain. Report this amount on Schedule D (Form 1040), Part II. Box 2c. Unrecaptured section 1250 gain from certain depreciable real property. Report this amount on line 11 of the Unrecaptured Section 1250 Gain Worksheet in the Instructions for Schedule D (Form 1040). Box 2d. Section 1202 gain from certain small business stock may be subject to a 50% exclusion. See Schedule D (Form 1040) instructions. Box 3. This part of the distribution is nontaxable because it is a return of your cost (or other basis). You must reduce your cost (or other basis) by this amount for figuring ga

FAQs

What does Box 1 report for interest income?

Box 1 shows interest paid to the recipient during the calendar year and does not include amounts shown in Box 3.

How does early withdrawal of time savings affect reporting?

Box 2 covers interest or principal forfeited because of early withdrawal, and you may deduct it on the “Penalty on early withdrawal of savings” line of Form 1040.

Who is a nominee recipient under these instructions?

A nominee recipient is someone whose federal identification number is shown on the form when it includes amounts belonging to another person. The nominee must file Form 1099-INT for each other owner and furnish a Form 1099-INT to each.

Sep 19, 2026

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