I rec'd a 1099-INT for the interest earned on my mortgage escrow account --shows interest income of $65.72 (box 1) and Federal Income tax withheld of $15.78 (box 4). I understand that I need to report the interest income as 1099 interest earned, but where do I report the taxes withheld? or do I reduce the interest earned by the amount of the taxes withheld and report the balance of $49.98 on the 1099 Interest earned ?
thanks
