

Why is my interest income subject to taxes? 1099-INT

Generally, if you earn interest income on an account that you can use or withdraw from at any time without paying a penalty, then the interest income is taxable. You would need to include the interest income on your tax return.

Go to this section in Credit Karma Tax: 1099-INT Income

If the total amount of taxable interest income you received during the tax year is more than $1,500 then you must complete Form 1040, Schedule B.

For examples from the IRS of taxable interest and nontaxable or excludable interest, see Topic Number 403 - Interest Received.

Foreign tax paid on 1099-INT

If your 1099-INT indicates foreign tax paid in box 6 and the corresponding country field shows blank or various, you can select Other country not listed as the Foreign country or U.S. possession on Credit Karma Tax when filing your federal return.

Credit Karma Tax supports the Foreign Tax Credit up to $300 for single-person filings, or $600 for married filing jointly, as long as you qualify to claim the Foreign Tax credit without filing Form 1116.

Credit Karma Tax does not currently support Form 1116 or Form 2555. If you need to file either of these forms with your federal return you will not be able to file with Credit Karma Tax.

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