In 2016, Uriah received the following interest payments:
Interest of $300 on an overpayment of 2015 Federal income taxes
Interest of $400 from his bank certificate of deposit.
Interest of $1,000 on municipal bonds
Interest of $1,500 on United States savings bonds (Series HH)

What amount, if any, should Uriah report as taxable interest income on his 2016 individual income tax return?

Question

In 2016, Uriah received the following interest payments: ​
Interest of $300 on an overpayment of 2015 Federal income taxes
Interest of $400 from his bank certificate of deposit.
Interest of $1,000 on municipal bonds
Interest of $1,500 on United States savings bonds (Series HH)
​
What amount, if any, should Uriah report as taxable interest income on his 2016 individual income tax return?

Quizplus · Accepted Answer

Uriah should report $2,200 as taxable interest income on his 2016 individual income tax return. The interest on the overpayment of 2015 Federal income taxes and the interest on the municipal bonds are both taxable. The interest from the bank certificate of deposit and the United States savings bonds (Series HH) are exempt from Federal income tax, but may be subject to state or local income tax.

In 2016, Uriah Received the Following Interest Payments: ​

In 2016, Uriah Received the Following Interest Payments: