In 2013,Uriah received the following interest payments: Interest of $400 on an overpayment of 2012 Federal income taxes Interest of $300 from his bank certificate of deposit.
Interest of $1,500 on municipal bonds
Interest of $1,000 on United States savings bonds Series HH)
What amount,if any,should Uriah report as taxable interest income on his 2013 individual income tax return?

Question

Quizplus · Accepted Answer

Uriah should report the $1,700 as taxable interest income on his 2013 individual income tax return. The interest on overpayment of 2012 Federal income taxes and the interest from his bank certificate of deposit are both taxable. The interest from the municipal bonds and the United States savings bonds Series HH are tax-exempt for federal income tax purposes, but may be subject to state income tax. Therefore, the total taxable interest income is $400 + $300 + $1,000 = $1,700.

In 2013,Uriah Received the Following Interest Payments: Interest of $400