U.S. · Tax forms
1099-INT box 8 tax-exempt interest.
All 17 boxes on the interest statement and the Form 1040 line each one feeds.
Form 1099-INT reports interest from banks, bonds and similar sources. Box 8 is tax-exempt interest, mostly from municipal bonds, and goes on Form 1040 line 2a. Taxable interest in box 1 (and Treasury interest in box 3) goes on line 2b. Box 9, private activity bond interest, is already included in box 8 but may matter for the alternative minimum tax on Form 6251. Pick a box below for the IRS meaning and the destination.
Look up a 1099-INT box
Result
Form 1099-INT boxes
| Box | Meaning | Where it goes (per the IRS instructions) |
|---|---|---|
| Box 1 | Interest income: Taxable interest of $10 or more not in box 3, including bank deposit interest, accumulated life insurance dividends and, at $600 or more, interest paid in the course of a trade or business such as interest on a tax refund. Excludes money market fund dividends, which are on Form 1099-DIV. | Form 1040 line 2b (taxable interest). Schedule B is required if the total is over $1,500 or other conditions apply. |
| Box 2 | Early withdrawal penalty: Interest or principal forfeited because of early withdrawal of a time deposit such as a CD. Box 1 is not reduced by it. | Deducted on Schedule 1 (Form 1040), line 18, Penalty on Early Withdrawal of Savings; the 1099-INT shows the amount. |
| Box 3 | Interest on U.S. savings bonds and Treasury obligations: Interest on savings bonds, Treasury bills, notes and bonds. Not included in box 1. | Taxable interest: part of the Form 1040 line 2b total. |
| Box 4 | Federal income tax withheld: Backup withholding, for example when the recipient did not furnish a TIN. | Form 1040 line 25b (federal tax withheld on Forms 1099). |
| Box 5 | Investment expenses: Single-class REMIC investment expenses only. The instructions state this amount is not deductible. | Not deductible. |
| Box 6 | Foreign tax paid: Foreign tax paid on the interest, in U.S. dollars. | Foreign tax credit, normally Form 1116. No Form 1116 is needed when all your foreign income is interest and dividends reported on 1099s and foreign taxes total no more than $300 ($600 joint), if other conditions in the instructions are met. |
| Box 7 | Foreign country or U.S. territory: The country or territory for which the foreign tax in box 6 was paid. | Identifies the country for box 6. |
| Box 8 | Tax-exempt interest: Interest of $10 or more on obligations of a state, D.C., a U.S. territory, an Indian tribal government or their political subdivisions, or qualified volunteer fire departments. Includes box 9. Mutual fund exempt-interest dividends are on Form 1099-DIV. | Form 1040 line 2a (tax-exempt interest). If you bought the bond at a premium, report only the net amount. |
| Box 9 | Specified private activity bond interest: Interest of $10 or more from specified private activity bonds, generally issued after August 7, 1986. Already included in the box 8 total. | See the Form 6251 (alternative minimum tax) instructions. |
| Box 10 | Market discount: Accrued market discount on a covered security, if the recipient notified the payer that a section 1278(b) election was made. | See Pub. 550 for market discount. |
| Box 11 | Bond premium: Amortization of premium on a taxable covered security, other than a Treasury obligation, unless the holder opted out. Left blank if box 1 is already a net amount. | See Pub. 550 for the bond premium adjustment. |
| Box 12 | Bond premium on Treasury obligations: Amortization of premium on a Treasury covered security. Left blank if box 3 is already a net amount. | See Pub. 550. |
| Box 13 | Bond premium on tax-exempt bond: Amortization of premium on a tax-exempt covered security. Left blank if box 8 or 9 is already a net amount. | Report only the net tax-exempt interest on line 2a. |
| Box 14 | Tax-exempt and tax credit bond CUSIP no.: The CUSIP number of the bond behind box 8, or “various”. | Identifies the bond. |
| Boxes 15-17 | State information: State, payer’s state ID number and state tax withheld. For the payer’s convenience; not required for the IRS. | Use for your state return. |
Tax-exempt does not always mean ignore
Tax-exempt interest is not taxed as regular income, but you still report it. The 1040 instructions say to enter the total of tax-exempt interest, including exempt-interest dividends from a mutual fund shown in box 12 of Form 1099-DIV, on line 2a. Box 9 is private activity bond interest that the payer has already included in box 8. It is called out separately because the instructions point you to the alternative minimum tax rules on Form 6251.
Do not mix up the lines. Line 2a is tax-exempt interest and line 2b is taxable interest, with box 1 and box 3 going to line 2b. Schedule B is needed on line 2b when the total is over $1,500.
Worked example
Jordan receives a 1099-INT with $800 in box 1, $300 in box 3 and $1,200 in box 8 (of which $200 is in box 9). Taxable interest on line 2b is $800 plus $300, or $1,100, and Schedule B is not required unless other conditions apply. Tax-exempt interest on line 2a is $1,200, and the $200 of private activity bond interest in box 9 is a Form 6251 item.
Limits
This page describes the payer instructions for Form 1099-INT and the lines named in the 2025 Form 1040 instructions. Bond premium, market discount and savings bond interest follow Pub. 550, which is the IRS’s own reference for them. State taxation of Treasury and municipal interest varies and is not covered.
More form decoders
The IRS interest rates by quarter page and the capital gains tax calculator are related. Dividend boxes are on the 1099-DIV box decoder.
Sources
- Instructions for Forms 1099-INT and 1099-OID: Specific Instructions for Form 1099-INT: boxes 1 to 17. Read November 2, 2026.
- Instructions for Form 1040 (2025): Lines 2a, 2b, 18 and 25b; Foreign Tax Credit. Read November 2, 2026.
IRS pages last reviewed April 30, 2026. Line numbers are those printed in the 2025 instructions and can change.
Frequently asked questions
What is box 8 on Form 1099-INT?
Tax-exempt interest of $10 or more, such as interest on municipal bonds. It goes on Form 1040 line 2a.
Is box 9 added to box 8?
No. Box 9 specified private activity bond interest is already included in the box 8 total. It is shown separately for alternative minimum tax purposes.
Where does 1099-INT box 1 go?
Taxable interest in box 1 goes in the line 2b total on Form 1040. Schedule B is required if the total is over $1,500 or other Schedule B conditions apply.
What is the difference between box 1 and box 3?
Box 1 is taxable interest from banks and similar payers. Box 3 is interest on savings bonds and Treasury bills, notes and bonds, reported separately and not included in box 1.
What is box 2 on a 1099-INT?
The early withdrawal penalty on a time deposit such as a CD. It is not subtracted from box 1, and it is deducted separately on your return.
Not tax advice
This page summarizes IRS instructions, mostly written for the people who prepare the form, and is not tax, legal or financial advice. The payer, a CPA or an enrolled agent can confirm what a box or code means for your return. Everything runs in your browser; nothing you enter is sent anywhere.