Filing taxes can be a daunting task, especially when you’re dealing with multiple income sources. If you’ve earned interest from a savings account, CDs, or other financial instruments, you’ve likely received a 1099-INT form. This document reports your interest income to the IRS, and you must include it when filing your taxes.

Fortunately, Credit Karma Tax (now part of Cash App Taxes) offers a user-friendly platform to simplify the process. Whether you’re a freelancer, investor, or just someone with a high-yield savings account, understanding how to file with a 1099-INT is crucial—especially in today’s economic climate where interest rates are fluctuating and digital banking is on the rise.

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Understanding the 1099-INT Form

Before diving into the filing process, let’s break down what a 1099-INT actually is.

What Is a 1099-INT?

A 1099-INT is an IRS tax form that reports interest income paid to you during the tax year. Financial institutions issue this form if you’ve earned $10 or more in interest from:
- Savings accounts
- Certificates of Deposit (CDs)
- Bonds
- Treasury bills
- Other interest-bearing accounts

Key Boxes to Look For

The form contains several boxes, but the most important ones are:
- Box 1: Taxable interest income (the amount you must report)
- Box 2: Early withdrawal penalties (if applicable)
- Box 3: Interest on U.S. savings bonds and Treasury obligations
- Box 8: Tax-exempt interest (not federally taxable but may affect state taxes)

If you’ve received multiple 1099-INT forms (e.g., from different banks), you’ll need to report the total interest income from all of them.

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Why Filing with Credit Karma Tax (Cash App Taxes) Is a Smart Choice

With the rise of fintech solutions, more taxpayers are turning to free, digital tax-filing services. Here’s why Credit Karma Tax (now integrated into Cash App Taxes) stands out:

1. Free Federal and State Filing

Unlike some platforms that charge for state returns, Credit Karma Tax offered completely free filing—a major perk for freelancers and gig workers who may have multiple income streams.

2. User-Friendly Interface

The platform guides you step-by-step, making it easy to input 1099-INT data without needing deep tax knowledge.

3. Automatic Import Features

If your bank supports it, you can import 1099-INT data directly, reducing manual entry errors.

4. Real-Time Refund Tracking

You can monitor your refund status seamlessly—a feature that’s especially helpful in uncertain economic times.

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Step-by-Step Guide to Filing with a 1099-INT

Now, let’s walk through how to file your taxes using Credit Karma Tax (Cash App Taxes) when you have a 1099-INT.

Step 1: Gather Your Documents

Before starting, ensure you have:
- Your 1099-INT form(s)
- Social Security Number (SSN) or ITIN
- Any other income documents (e.g., W-2, 1099-NEC)
- Deduction records (if itemizing)

Step 2: Start a New Return

Log in to Cash App Taxes (formerly Credit Karma Tax) and select "Start a New Return."

Step 3: Enter Personal Information

Fill in basic details like:
- Name
- Address
- Filing status (Single, Married Filing Jointly, etc.)
- Dependents (if applicable)

Step 4: Input Interest Income

Navigate to the "Income" section and select "Interest Income." Here, you’ll:
1. Enter the total taxable interest from Box 1 of your 1099-INT.
2. If applicable, input tax-exempt interest (Box 8) for state tax purposes.
3. Report any early withdrawal penalties (Box 2), which may be deductible.

Step 5: Review Deductions and Credits

• If you’re taking the standard deduction, the software will apply it automatically.
• If itemizing, ensure you include any eligible expenses (e.g., student loan interest).

Step 6: File Your Return

• Double-check all entries.
• E-file your federal and state returns for free.
• Save a copy of your return for records.

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Common Mistakes to Avoid

Filing with a 1099-INT is straightforward, but errors can happen. Here’s what to watch for:

1. Not Reporting All 1099-INT Forms

If you have multiple accounts, forgetting even a small-interest form can trigger an IRS notice.

2. Miscounting Tax-Exempt Interest

While Box 8 interest isn’t federally taxable, some states tax it. Always check state rules.

3. Ignoring Early Withdrawal Penalties

If you cashed out a CD early, the penalty (Box 2) might be deductible—don’t overlook it.

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The Bigger Picture: Interest Income in Today’s Economy

With the Federal Reserve raising interest rates to combat inflation, many Americans are seeing higher yields on savings accounts and CDs. While this is great for earnings, it also means:

• More taxpayers will receive 1099-INT forms than in previous low-rate years.
• State tax implications may vary—some states tax interest income differently.
• Digital banking trends mean more people are earning interest through fintech apps (e.g., Chime, SoFi), requiring vigilance in tracking 1099-INT forms.

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Final Tips for a Smooth Filing Experience

• Set up IRS alerts to track missing 1099-INT forms.
• Use direct deposit for faster refunds.
• Consult a tax pro if you have complex investments (e.g., bonds, foreign accounts).

By leveraging Cash App Taxes (formerly Credit Karma Tax), you can simplify the process and ensure your 1099-INT income is reported accurately—keeping you compliant and stress-free during tax season.