Enter the information from your Form 1099-INT exactly as it appears on the form. If your form has amounts in both Box 1 and Box 3, enter amounts in both boxes as they appear. You may have received other interest from this payer in addition to Savings Bonds and Treasury obligations.
However, don't duplicate the Box 3 entry by adding it to the amount in Box 1. Amounts in Box 3 are amounts not included in Box 1 as reported. The IRS instructions for Form 1099-INT, Box 1, state "Enter taxable interest not included in box 3".
When you receive a 1099-INT, you’ll need to understand what each box of the form is reporting, so that you can report your interest on the appropriate lines of your tax return:
- Box 1 of the 1099-INT reports all taxable interest you receive, such as your earnings from a savings account.
- Box 2 reports interest penalties you were charged for withdrawing money from an account before the maturity date.
- Box 3 reports interest earned on U.S. savings bonds or Treasury notes, bills or bonds. Some of this may be tax-exempt.
- Box 4 reports any federal tax withheld on your interest income by the payer.
- Box 8 reports tax-exempt interest and relates to interest-bearing investments you hold with state and local governments, such as municipal bonds.
See this TurboTax tips article for more information.
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