Intuit Academy Tax Practice Exam 2026 – All-in-One Guide for Exam Mastery!

The form used to report interest income is Form 1099-INT. This form specifically tracks and reports interest payments made to individuals by banks, financial institutions, and other entities. When a person earns interest income from savings accounts, certificates of deposit, or other interest-bearing accounts, the entity that pays the interest must issue a Form 1099-INT to the taxpayer and the IRS, detailing the amount of interest earned over the tax year.

Using Form 1099-INT helps both taxpayers and the IRS ensure that the income is accurately reported on tax returns. This form provides the necessary information for individuals to correctly report their interest income on their tax filings, typically on Form 1040.

In contrast, the other forms listed serve different purposes: Form 1099-MISC is used for reporting miscellaneous income, such as payments to independent contractors; Form W-2 is utilized by employers to report wages, salaries, and tips paid to employees; and Form 1040 is the individual income tax return form that summarizes a taxpayer's overall income, deductions, and tax obligations. Each of these forms is essential for different types of income reporting and cannot replace the specific function of Form 1099-INT in relation to interest income.