Basics Intermediate: Reporting Investment Income on Your Federal Tax Returns

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Interest you earned from bank accounts or other savings institutions is reported to you on IRS Form 1099-INT.

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True

False

True. "INT" refers to interest.

To determine which of your investment income is taxable, you would consult _______.

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Publication 525

Publication 550

Publication 590

Publication 550. Publication 550 describes income that is and is not subject to taxation.

The revised 1040 form now includes how many schedules for recording additional information?

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3. The 1040 now includes a new set of three schedules on which you will record adjustments, credits, taxes, and other information.

Rental property is a form of supplemental income.

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True

False

True. Rental property is a form of supplemental income.

Dividends reinvested to buy more securities are not taxable as ordinary income.

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True

False

False. Dividends reinvested to buy more securities are taxable as ordinary income (except in the case of tax-sheltered accounts).

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