Interest Income received from taxable and tax-exempt earnings are reported on this form. This includes domestic and foreign bonds, municipal bonds, mutual funds, as well as other interest payment sources.
Box 1 reports interest income, exclusive of U.S. savings bond and U.S. Treasury obligations interest. The transaction level details are provided on other year-end activity statements and reports.
U.S. savings bonds and treasury obligations
Box 3 reports interest from U.S. savings bonds and US Treasury obligations. US savings bond and treasury obligation interest is separated for state tax reporting. Interest on these obligations is generally not subject to state tax.
Federal income tax withheld
If the IRS has notified us that income tax must be withheld (backup withholding) on interest income in your account, the tax withheld amount will be reported in Box 4.
Note: Interest payments details are part of the supplemental information on the Consolidated 1099.
Box 5 reports investment expenses from real estate mortgage investment conduits (REMIC) income.
Boxes 6 and 7 pertain to both any foreign tax withheld from interest income and the associated foreign country code.
Interest payments not subject to federal taxation, such as municipal bonds, are reported under Box 8. Accrued interest paid: Provided in supplemental information on consolidated 1099 – reduce the amount of reported interest by interest paid.
Any amounts reported in Box 8 subject to the Alternative Minimum Tax (AMT) is reported in Box 9.
Market Discount & Bond Premium
The market discount and bond premium for taxable and tax-exempt bonds are reported as separate sub-totals in Boxes 10, 11, and 13.
Note: IRS Circular 230 Notice: These statements are provided for information purposes only, are not intended to constitute tax advice which may be relied upon to avoid penalties under any federal, state, local or other tax statutes or regulations, and do not resolve any tax issues in your favor.