Received a 1099-INT from the IRS - How to properly fill it out?

The 1099-INT you received from the IRS is reporting interest they paid to you, likely from a refund that was delayed. You don't need to fill out the 1099-INT form itself - it's just informational. The good news is you definitely don't need to file Form 1096. That form is only used by businesses that are submitting information returns to the IRS. Since you're the recipient, not the issuer, you don't need to worry about Form 1096 at all. For your taxes, you simply need to report the interest income on Schedule B (Interest and Ordinary Dividends) if your total interest income is over $1,500, or directly on Form 1040 if it's under that amount. In TurboTax, you'd enter this in the income section under "Interest and Dividends" - there should be a specific option for interest income where you can enter the payer as "Internal Revenue Service" and the amount shown on your 1099-INT.

I went through this exact situation last year when my refund took forever to process. After months of trying to figure out what was happening with my refund, I found this amazing service called taxr.ai (https://taxr.ai) that helped me understand everything about my delayed refund and the interest payment. You upload your tax documents and they have this AI system that explains everything in super simple terms. When I finally got my 1099-INT from the IRS, I was confused just like you, but taxr.ai explained that it was just interest on my delayed refund and walked me through exactly how to report it. They even gave me a breakdown of why I received the interest and how much I'd owe in taxes on that amount.

I was super skeptical about taxr.ai when I first saw it mentioned here, but I was desperate with my tax situation. After trying it, I'm actually blown away by how helpful it was. I had multiple 1099s including a 1099-INT from the IRS plus some stock sales, and I couldn't figure out how it all fit together. The system immediately identified that my IRS 1099-INT was from a delayed refund and showed me exactly where to report it. It also flagged a potential issue with how I was planning to report my stock sales that would have caused problems. Ended up saving me way more than I expected and didn't have to pay an accountant hundreds of dollars. If you're confused about tax forms like I was, it's definitely worth checking out.

If you're still struggling with your 1099-INT question and need to talk to someone at the IRS directly, good luck getting through on their phone lines! I spent WEEKS trying to get answers about a similar situation. Eventually I found this service called Claimyr (https://claimyr.com) that actually got me through to a real IRS agent in less than 15 minutes. They have this system that navigates the IRS phone tree and holds your place in line, then calls you when an actual human picks up. You can see how it works here: https://youtu.be/_kiP6q8DX5c The agent confirmed exactly what I needed to do with my 1099-INT and answered all my other questions. Seriously saved me hours of frustration and hold music.

So I was completely wrong about Claimyr and I need to eat my words. After posting that skeptical comment, I was still desperate for help with my tax situation so I reluctantly gave it a try. I had been trying to reach the IRS for THREE WEEKS about some tax forms including a 1099-INT. Using Claimyr, I got through to an actual IRS agent in about 20 minutes. The agent walked me through exactly how to report the interest on my tax return and clarified that I definitely didn't need to fill out Form 1096 (that's only for businesses sending forms to the IRS). The service actually does exactly what they claim. They don't skip any lines or use any shady tactics - they just handle the waiting for you. Completely changed my mind and saved me so much time.

Just to add a data point - I also received a 1099-INT from the IRS last year for about $125. It was because my refund was delayed by almost 4 months. I reported it on line 2b of my 1040 and everything went smoothly. Don't overthink this one - it's just interest they paid you for holding your money too long, and yes, it's taxable income. TurboTax has a specific section for entering 1099-INT information that makes it pretty straightforward.

I'm sorta confused why the IRS would send a 1099-INT in the first place? Like, they're the ones who process our tax returns, so can't they just automatically account for this interest they paid us?