Form 1099-INT is how banks, brokerages and TreasuryDirect report interest on Treasury securities, certificates of deposit, savings accounts and high-yield savings accounts. This guide covers which box that interest appears in, when recipient copies are due, and the state-tax treatment of Treasury interest. It is educational, not tax advice.
What Form 1099-INT is
Form 1099-INT reports interest income to the recipient and to the IRS. The Instructions for Forms 1099-INT and 1099-OID tell payers to report taxable interest of $10 or more, and to report any interest if federal income tax was withheld. Brokerages often include the 1099-INT as part of a consolidated 1099. TreasuryDirect issues one 1099 that can include 1099-INT, and when they apply, 1099-B and 1099-OID sections, as described on its tax forms and withholding page.
Which box each kind of interest uses
| Box | What the IRS instructions put there | Common examples on this site |
|---|---|---|
| Box 1 | Taxable interest not included in Box 3, including interest paid or credited on bank deposits. | Bank certificates of deposit, savings accounts, money market deposit accounts and high-yield savings accounts (HYSAs). |
| Box 2 | Early withdrawal penalty. | A penalty charged for closing a CD before maturity, which the recipient may be able to deduct; see IRS Publication 550. |
| Box 3 | Interest on U.S. Savings Bonds, Treasury bills, Treasury notes and Treasury bonds. Do not include in Box 1. | T-bills, Treasury notes and bonds, and savings-bond interest when it is reported. |
Box descriptions follow the IRS Instructions for Forms 1099-INT and 1099-OID (Rev. January 2024, still the current instructions as of Nov 13, 2026). The Copy B of the form also states that Box 3 interest is exempt from state and local income taxes.
Treasury interest and state tax
IRS Topic 403, Interest received, states that interest income from Treasury bills, notes and bonds is subject to federal income tax but is exempt from all state and local income taxes. The same treatment is written on Form 1099-INT and is grounded in 31 U.S.C. 3124. TreasuryDirect describes it the same way for marketable Treasury securities, including the discount earned on bills.
Interest on bank CDs, savings accounts and HYSAs is taxable federally, per IRS Publication 550 and Topic 403, and is generally taxable by states that have an income tax. In a state with no income tax, the state exemption for Treasury interest has no state-tax effect. Many states that start from federal adjusted gross income ask the filer to subtract Treasury interest on the state return. The after-tax comparison is on T-bill vs CD after tax. A tax professional can apply these rules to a specific return; this page does not.
The year T-bill interest is reported
Treasury bills do not pay a coupon during their term. The interest is the difference between the price paid and the amount received at maturity, or the amount received if the bill is transferred before maturity. TreasuryDirect's interest-income reporting booklet and Publication 550 treat that amount as reportable in the year the bill matures or is sold, which is not necessarily the year it was acquired. TreasuryDirect's example: a 26-week bill acquired in the fall and paid off the following spring is reported for the spring year.
TreasuryDirect also notes a narrow calendar quirk: if a bill matures on December 31 and that date is a weekend or holiday, payment is made on the first business day of the new year, but the 1099-INT still shows the payment on the maturity date, not the payment date. See Tax forms and tax withholding.
When the forms arrive
The payer must furnish Form 1099-INT to the recipient by January 31 of the year after the calendar year of the interest (26 U.S.C. § 6049). For interest in calendar year 2026, that date is January 31, 2027. Payers generally file Copy A with the IRS by February 28 if they file on paper, or by March 31 if they file electronically, according to the IRS information-returns chart.
- TreasuryDirect. TreasuryDirect's 1099 page says 1099s are placed in the account by January 31 of the following year, with an email and an in-box message when the form is ready. The form is under the ManageDirect tab, in Manage My Taxes, for the relevant year. The Taxable Transaction Summary is not the 1099.
- Banks and credit unions. Recipient copies for CD, savings and HYSA interest in Box 1 are also due to the account holder by January 31. Many institutions post the form in online banking during January.
- Brokerages. A consolidated 1099 may include Treasury interest in the 1099-INT section (Box 3) alongside other interest. Brokerages sometimes issue a corrected form later in the season if a payer figure changes; the January 31 date is still the statutory due date for the original statement.
Savings bonds, in brief
Topic 403 states that interest on Series EE and Series I savings bonds is generally not included in income until the earlier of maturity or redemption, unless the holder elects to include the interest each year. TreasuryDirect says it places a 1099 in the account when a savings bond is cashed in TreasuryDirect, and that it does not provide a 1099 for a savings bond that is only purchased or held. Paper bonds cashed by mail are sent a 1099 by January 31 of the following year. Rate history and comparisons are on I bond rate history and I bond vs T-bill vs CD.
This is not tax advice
This page summarizes published IRS and TreasuryDirect rules so readers can find the forms and the boxes. It is not tax advice, and it is not a substitute for IRS publications, the form instructions, or a qualified tax professional. Filing situations differ, including for joint owners, trusts, and states with their own subtraction rules.
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Frequently asked questions
What is Form 1099-INT?
Form 1099-INT is the IRS information return used to report interest income. The IRS instructions tell payers to report taxable interest of $10 or more, or any amount if federal income tax was withheld. This page is educational and is not tax advice.
Which box is Treasury interest in?
The IRS instructions for Form 1099-INT say interest on U.S. Savings Bonds, Treasury bills, Treasury notes and Treasury bonds is entered in Box 3, not Box 1. The form itself notes that this interest is exempt from state and local income taxes.
When do 1099-INT forms arrive?
Federal law requires the payer to furnish the statement to the recipient by January 31 of the year after the calendar year of the interest. For interest paid in 2026, that date is January 31, 2027. TreasuryDirect says it places 1099s in a TreasuryDirect account by January 31 and that banks and brokerages also send recipient copies by that date.
Is Treasury interest taxed by states?
Interest on Treasury bills, notes and bonds is subject to federal income tax and is exempt from state and local income tax, as described in IRS Topic 403, on Form 1099-INT, and in 31 U.S.C. 3124. Bank CD and savings interest is generally taxable federally and by states that have an income tax. A tax professional can apply the rules to a specific state return.
In which year is T-bill interest reported?
TreasuryDirect states that interest on a Treasury bill is reportable in the year the bill matures or is sold, which is not necessarily the year it was acquired. A 26-week bill issued in the fall and paid off the following spring is an example: the interest is reported for the spring year.
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