Yes. You are responsible for reporting interest income to the IRS in the year that it is earned, if it's credited to the accounts. If you earn more than $10 in interest in the year, the bank should send you a 1099-INT showing the interest earned. That same amount is reported by the bank to the IRS. It's important to note that even if you don't receive a 1099-INT from the bank, the interest is reportable income.
Published on BankingQuestions.com 1/23/08|