In 2018, Uriah received the following interest payments:Interest of $300 on an overpayment of 2017 Federal income taxesInterest of $400 from his bank certificate of deposit.Interest of $1,000 on municipal bondsInterest of $1,500 on US savings bonds (Series HH)What amount, if any, should Uriah report as taxable interest income on his 2018 individual income tax return?

Question

Quizplus · Accepted Answer

Uriah should report $2,200 as taxable interest income on his 2018 individual income tax return. The interest from the overpayment of 2017 Federal income taxes is not taxable. However, the interest earned from a certificate of deposit, municipal bonds, and US savings bonds are all considered taxable income and must be reported on the tax return.

In 2018, Uriah Received the Following Interest Payments:Interest of $300