Form 1099-INT (continued)

If a taxpayer withdrew funds from a time deposit before an account's maturity date and incurs an interest penalty, the penalty is shown in box 2. Do not subtract the penalty from the total interest entered on line 8a of Form 1040. The early withdrawal penalty is an adjustment to income and is entered on line 30 of Form 1040.

Box 3 shows Interest on U.S. Savings Bonds and Treasury obligations. Include the taxable portion with other amounts reported on line 8a of Form 1040A or Form 1040.

Some Forms 1099-INT have entries in box 4 indicating that federal income tax has been withheld from the interest paid. Be sure to include the amount shown in box 4 with federal tax withheld on Form 1040EZ, line 7, or Form 1040A, line 38, or Form 1040, line 63.

	The total on line 7 of Form 1040EZ, line 38 of Form 1040A, or line 62 of Form 1040 includes all income tax withheld from Forms W-2 and 1099.