FAQs

Why did I receive a Form 1099-INT?

Receiving a Form 1099-INT (Interest Income) means you earned interest over the course of the year that must be reported on your tax return.

For Pennymac customers, the most common reason you receive this form is that your escrow account earned interest. Here is how it works:

• State Laws: Depending on the state where your property is located, we may be required to pay you interest on the funds held in your escrow account (the money set aside to pay your taxes and insurance).
• The IRS Threshold: If your escrow account generated $10.00 or more in interest during the previous tax year, the IRS requires us to report that income and send you a Form 1099-INT.

Please note: If you live in a state that does not require interest to be paid on escrow balances, or if your account earned less than $10.00, you will not receive this form.