What is considered taxable interest on a 1040EZ form?

Jan 25, 2019
askacpaicon

What is considered taxable interest on a 1040EZ form?

First of all, the 1040EZ and 1040 Short Form no longer exists for 2018. The only federal tax form is the new 1040. The new form is available on the IRS’s website.

Taxable interest is reported on Line 2b of the new form. This is any interest reported to you on Form 1099-INT or 1099-OID, from banks, treasury bills, notes, bonds, or interest you receive on the repayment of any personal loans you may have made to family and friends.  

It does not include interest on municipal bonds issued by a state or political subdivision, Series EE, and Series I bonds issued after 1989 if used for higher education expenses. 

Visit the IRS’s website for more information on taxable and tax-exempt interest.

For more resources, check out PICPA’s Money & Life Tips, Ask a CPA, or CPA Locator.

Answered by: Anthony R. Deutsch, CPA, is a shareholder with Concannon, Miller & Co. PC in Bethlehem, Pa.

Pennsylvania CPA Journal

Read the latest from the Pennsylvania CPA Journal online or via the mobile app and digital edition.

Read More

CPA Now

Get the latest info on professional trends, management, and leadership skills on CPA Now.

Read More

Premier Sponsors

Platinum Sponsors

Gallagher Bollinger Logo
CPACharge


Silver Sponsors

Paychex logo
Capstan Logo
epsa USA


Bronze Sponsors

sage-logo_bright_green_rgb_2018_28469
TaxConnex_logo_TM_tagline2019
botkeeper1
Fox School of Business, Temple University


Interested in becoming a sponsor? View packages >