Contributed by: MatthewD, FreeTaxUSA Agent, Tax Pro
The ease of investing using online accounts has grown. With an app for smart phones, or an online account on your computer, many more people are investing on their own in the stock market.
The statement you get from your brokerage company will be a composite statement, and will have several 1099 forms listed on it, each reporting different types of income.
Your brokerage statement may have the following 1099 forms:
- 1099-B: Proceeds from Broker and Barter Exchange Transactions
- 1099-INT: Interest Income
- 1099-DIV: Dividends and Distributions
- 1099-OID: Original Issue Discounts and Adjustments
- 1099-MISC: Miscellaneous Information
- Section 1256 Contracts 1099-B
A brokerage statement will include details of stock sales, summaries, and other information related to your brokerage account.
In this article we will focus on the Form 1099-INT, Interest Income and how to enter it in FreeTaxUSA
Here is a sample of what a form 1099-INT of a common brokerage statement may look like. Yours may be a little different, however a brokerage will have forms that conform to the approved forms from the Office of Management and Budget (OMB). Your 1099-INT may be on the first page of the consolidated statement or the second page. It is very possible it is blank if you did not have interest bearing investments.
If you have a statement with amounts like the 1099-INT above, it must be entered as interest on your tax return. We will use this 1099-INT in our example.
Step 1: Select the Income menu and choose the Investment and Savings option.
Step 2: Select “Add an Investment”, and the option for Interest (1099-INT then Save and Continue.
Step 3: On the “Tell us about…” page, select who owns the account, enter the name of the financial institution and continue to the “Enter the interest info …” page. Enter each amount as it corresponds to the 1099-INT form box numbers and then Save and Continue. Answer any questions that the software asks you on the following pages.
If you have more than one 1099-INT, continue to the “Your Investment and Savings Account” page and repeat step(s) 2 and 3 to enter each additional 1099-INT.
