Taxable Interest Income

Interest paid to you must be reported to the IRS.

Do your taxes online, for free:

Turbo Tax for The Web lets you work on your return for free until you're ready to file. Start now.

Click here to start

If you don't have time to file your return, you can file an extension online right now, with H&R Block.

What is taxable interest income?

Taxable interest is the money you earn from loaning your money. Form 1099-INT lists your taxable interest income. You receive one from each institution paying you interest.

What is non-taxable interest income?

Interest you earn that isn't taxes. Sources include state and local government issued municipal bonds and tax-exempt interest from mutual funds.

Reporting taxable interest income

Taxable interest income is reported directly on Form 1040, Form 1040A, or Form 1040EZ - depending on which form you're eligible to use and how much interest you've earned.

Sidebar
E-file online with H&R Block where you can work on your return for free until you file.

Related IRS publications

Get more information about reporting interest income, from Publication 550.

For a paper tax return, attach Schedule A with your 1040, or Schedule 1 with your 1040a. (If you do your taxes online, all of this will be taken care of for you electronically.)

Note: you will need an Adobe Acrobat Reader to view these publications, which you can get here. (But you probably already have it.)