In 2014, Uriah received the following interest payments:
Interest of $400 on an overpayment of 2013 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 2014 individual income tax return?

Question

In 2014, Uriah received the following interest payments: ​
Interest of $400 on an overpayment of 2013 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 2014 individual income tax return?

Quizplus · Accepted Answer

Uriah should report $1,700 as taxable interest income on his 2014 individual income tax return. The interest on the overpayment of 2013 Federal income taxes is not taxable. However, the interest from the bank certificate of deposit, municipal bonds, and United States savings bonds (Series HH) are all taxable. Thus, the total taxable interest income is $300 + $1,500 + $1,000 = $1,700.

In 2014, Uriah Received the Following Interest Payments: ​

In 2014, Uriah Received the Following Interest Payments: