Form 1099-INT

Interest income is reported to the taxpayer on Form 1099-INT, Interest Income. Financial Institutions and brokerages forward copies of Form 1099-INT to the IRS.

Box 1 of each Form 1099-INT shows taxable interest income received from the payer. Add the taxable interest earned from all the taxpayer's Forms 1099-INT, and report the total on line 8a of Form 1040 or 1040A. Box 3 shows nontaxable interest income. Report the total nontaxable interest on line 8b of Form 1040 or 1040A.

	Question: What if a taxpayer receives a mutual fund statement (Form 1099-DIV) that shows tax-exempt interest? Answer: Be sure to report all tax-exempt interest on line 8b of Form 1040 or 1040A.