How to Report Interest to the IRS
- 1). Calculate your total taxable interest by adding the taxable interest from each of your sources. Each financial institution from which you receive interest will send you form 1099-INT that shows your taxable income.
- 2). Use form 1040 to file your federal income taxes if your total interest exceeds $1,500. If you have less than $1,500, you can use form 1040, 1040A or 1040EZ.
- 3). Report the total taxable interest on line 2 of form 1040EZ, line 8a of form 1040A or line 8a of form 1040. This amount will be included in your taxable income.
- 4). Complete Schedule B if you have more than $1,500 in interest. On this form, you must show the sources of your interest income and how much interest you received from each source.
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