- [Instructor] Another very common 1099
you'll probably receive is the 1099-INT,
or 1099 Interest Income form.
Let me walk you through one.
So just like a 1099 Miscellaneous
or any of the other 1099's,
on the left-hand side,
you'll have the payer's information.
In many cases, you as a business owner probably won't
be the payer on a 1099-INT, right?
Unless you operate a bank, or for some other reason,
pay interest to others,
you're probably not going to submit these.
However, you probably will receive some of them.
If you operate any kind of a business checking account
or business money market account
for the excess cash flow that you have in the business,
you'll receive this kind of a 1099-INT, in many cases.
So on the left, you'll have the payers information
along with the payer's tax ID number.
Then below that, we'll have the recipient's tax ID number
and your name, address, city, state, and zip code.
In addition to the identifying information
for the payer and the recipient,
on the right-hand side of the form will have
any money that has been paid out to you
by the financial institution.
So in box one, this would include interest income.
This is typically done for, say,
all interest income on any kind of large bank account,
like a money market account,
or a savings account you might have
for the business.
In addition to that,
you'll have various boxes down below
where you might have some sort
of additional interest income paid,
such as premiums on treasury bonds,
as an example, or on tax-exempt bonds,
that's municipal bonds
and any federal income tax that's withheld
as a result of this income
in the form of box four.
Finally, you may run into cases
where, particularly if you hold foreign bank accounts
or foreign bonds, or something similar,
you have foreign taxes paid here in box six.
In general though,
box one is the box that you'll need to focus on
for this particular form.
If you're borrowing money from someone other than a bank,
it's possible you'll need to send a 1099-INT.
But that's less common.
In contrast, almost every business or individual
with a bank account will receive a 1099-INT.
I've had some 1099-INTs come to me
with as little as $25 of income on them.
So it's more of a paperwork hassle
than a meaningful document for calculating tax liabilities.
Don't overlook it, less you trigger an audit
because you're missing forms that the IRS has on hand.