Doug and Pattie received the following interest income in the current year:
Greenbacks Bank also gave Doug and Pattie a cellular phone (worth $100) for opening the savings account. What amount of interest income should they report on their joint income tax return?

Question

Doug and Pattie received the following interest income in the current year: ​
 Greenbacks Bank also gave Doug and Pattie a cellular phone (worth $100) for opening the savings account. What amount of interest income should they report on their joint income tax return?

Quizplus · Accepted Answer

Interest income received from First Savings Bank, Second National Bank, and Third Community Bank should be reported as income. The amount of interest income from these banks is $4,675 ($1,800 + $1,375 + $1,500). The $100 value of the cellular phone given to Doug and Pattie is not considered income and should not be reported. Therefore, the total interest income that should be reported on their joint income tax return is $4,575 ($4,675 - $100).

Doug and Pattie Received the Following Interest Income in the Current