Understanding Taxes on Earned Interest from Your Checking or Savings Account

The best account options, like a high-yield savings account (HYSA) and select checking accounts, also allow you to earn interest on your balance. However, it's important to be aware of the tax implications associated with this earned interest. In most cases, you do have to pay tax on interest earned. Use this guide to understand what the IRS requires and how to get your finances in order for tax season.  

IRS requirements for earned interest 

You should receive a Form 1099-INT from any financial institution you have an account with that earned $10 or more in interest during the calendar year. The IRS views earned interest as part of your total gross income. For this reason, it’s taxed the same amount as your ordinary income. The same goes for one-time cash bonuses, such as for a new account opening. If you were expecting a refund, this may slightly reduce what you get back.  

General Electric Credit Union (GECU) members with a Thrive Money Market, certificate, Choice Checking, or Amplified High-Yield Checking account account will receive their forms by mail before January 31^st. 

Accountholders can check their balance and accrued interest within Online Banking or our mobile app. While you don’t necessarily need to crunch the numbers ahead of the April 15^th filing deadline, it’s beneficial to keep your personal income tax liability in mind so there are no surprises. Consult an accountant for guidance tailored to your specific financial situation.