How is Interest Taxed on a Checking Account?
The interest  earned on checking accounts is considered taxable income. So, your bank, credit union or financial institution will send you a 1099-INT form each year your account earns interest over $10. You file this paperwork along with your yearly taxes. And don’t let this income being  taxed deter you from saving money; a traditional or high-yield savings account is still a worthwhile tool for your money.