IRS Publication 550 — Investment Income and Expenses

Terms you may need to know (see Glossary): Nominee Original issue discount (OID)

Generally, you report all your taxable interest income on Form 1040 or 1040-SR, line 2b.

Schedule B (Form 1040). You must complete Schedule B (Form 1040), Part I, if any of the following apply.

1. You had over $1,500 of taxable interest or ordinary dividends.

2. You are claiming the interest exclusion under the Education Savings Bond Program (discussed earlier).

3. You received interest from a seller-financed mortgage and the buyer used the property as a personal residence.

4. You received a Form 1099-INT for U.S. savings bond interest that includes amounts you reported in a previous tax year.

5. You received interest or ordinary dividends as a nominee.

6. You received a Form 1099-INT for interest on frozen deposits.

7. You received a Form 1099-INT for interest on a bond you bought between interest payment dates.

8. You are reporting OID in an amount less than the amount shown on Form 1099-OID.

9. You are reporting interest income of less than the amount shown on a Form 1099 due to amortizable bond premium.

In Part I, line 1, list each payer's name and the amount received from each. If you received a Form 1099 -INT or Form 1099-OID from a brokerage firm, list the brokerage firm as the payer.

Reporting tax -exempt interest. Total your tax-exempt interest (such as interest or accrued OID on certain state and municipal bonds, including zero coupon municipal bonds) reported on Form 1099 -INT , box 8; Form 1099-OID, box 11; and exempt -interest dividends from a mutual fund or other RIC reported on Form 1099 -DIV , box 12. Add these amounts to any other tax -exempt interest you received. Report the total on Form 1040 or 1040-SR, line 2a.

Form 1099 -INT , box 9, and Form 1099 -DIV , box 13, show the tax-exempt interest subject to the AMT on Form 6251. These amounts already are included in the amounts on Form 1099-INT , box 8, and Form 1099-DIV , box 12. Do not add the amounts in Form 1099 -INT , box 9, and Form 1099-DIV , box 13, to, or subtract them from, the amounts on Form 1099-INT , box 8, and Form 1099-DIV , box 12. Caution: Do not report interest from an individual retirement arrangement (IRA) as tax-exempt interest. Form 1099-INT. Your taxable interest income, except for interest from U.S. savings bonds and Treasury obligations, is shown in Form 1099-INT , box 1. Add this amount to any other taxable interest income you received. See the Form 1099-INT Instructions for Recipient if you have interest from a security acquired at a premium. You must report all your taxable interest income even if you do not receive a Form 1099-INT . Contact your financial institution if you do not receive a Form 1099 -INT by February 15. Your identifying number may be truncated on any paper Form 1099-INT you receive.