Elmer received the following distributions from Virginiana Mutual Fund for the calendar year 2018: $$\begin{array} { l r }
\text { Ordinary dividends } & \$ 250 \
\text { Capital gain distributions } & \$ 170 \
\text { Nontaxable distributions } & \$ 80
\end{array}$$ Elsie, Elmer's wife, did not own any of the Virginiana Mutual Fund shares, but she did receive $1,475 in interest on a savings account at the Moss National Bank and $175 in interest on California Municipal Bonds.Elmer and Elsie filed a joint income tax return for 2018.What amount is reportable as taxable interest income?

Question

Elmer received the following distributions from Virginiana Mutual Fund for the calendar year 2018: $$\begin{array} { l r } 
\text { Ordinary dividends } & \$ 250 \
\text { Capital gain distributions } & \$ 170 \
\text { Nontaxable distributions } & \$ 80
\end{array}$$ Elsie, Elmer's wife, did not own any of the Virginiana Mutual Fund shares, but she did receive $1,475 in interest on a savings account at the Moss National Bank and $175 in interest on California Municipal Bonds.Elmer and Elsie filed a joint income tax return for 2018.What amount is reportable as taxable interest income?

Quizplus · Accepted Answer

The taxable interest income includes the interest from the savings account at the Moss National Bank, which is $1,475. The interest from California Municipal Bonds is not taxable.

Elmer Received the Following Distributions from Virginiana Mutual Fund for the Calendar