Interest Income

Interest income from banks, credit unions, money market funds, bonds and tax-exempt bonds are reported on your taxes. Taxable interest is reported on Form 1040 Line 8a, and non-taxable interest is reported on Form 1040 Line 8b. If you earned more than $1,500 in interest, the interest should be detailed on Schedule B, with the total carried to Form 1040 lines 8a and 8b.

Line 8a: Interest

Gather all your 1099-INT statements from each bank that reported your interest earnings for the year. Using a calculator, add up all the interest amounts from every 1099-INT. Put the total figure on Form 1040 Line 8a.

If you have more than $1,500 in interest, you must fill out Schedule B (PDF) and attach it to your Form 1040.

Line 8b: Tax-Exempt Interest

Add up all the tax-exempt interest you have earned on municipal bonds and tax-exempt bond mutual funds. Put the total on Form 1040 Line 8b. Do not include this interest in your taxable interest on line 8a.