How to Report the Tax for Investment Interests

by Stephanie Ellen

If you have investment interests like savings bonds, shareholder's profit from owning stock, treasury bonds, treasury bills and treasury notes, you must report the interest you earn on those investments when filing your taxes. Investment income is taxable income and must be included with your regular tax return. Which form you file for investment income depends upon whether you earned less than $1,500 in interest or $1,500 or more for the tax year.

Interest Less Than $1,500

Download form 1040, 1040A or 1040EZ from the IRS' website. The form you use depends upon your filing status and other factors.

Add up the interest income from forms 1099-INT, Box 1.

Write the total amount of interest income on Form 1040, line 8a; Form 1040A, line 8a; or Form 1040EZ, line 2.

Fill out the rest of your return and file as usual.

Interest of $1,500 or More

Download Schedule B from the IRS website.

Fill out Part I of the form using your form 1099-INT. Each payer should be listed separately in Part I, along with the amount of interest. Report interest only for amounts listed in 1099-INT, box 1.

Add the total amount of interest and then write the total in line 2.

Enter the total amount of excusable interest from series EE I U.S. savings bonds issued after 1989, in line 3 if applicable. Deduct line 3 from line 2, and then write that amount in line 4.

File Schedule B with your 1040, 1040A or 1040EZ.

Items you will need

  • IRS Form 1099-INT
  • IRS Form 1040, 1040A or 1040EZ
  • IRS Schedule B

Resources

About the Author

Stephanie Ellen teaches mathematics and statistics at the university and college level. She coauthored a statistics textbook published by Houghton-Mifflin. She has been writing professionally since 2008. Ellen holds a Bachelor of Science in health science from State University New York, a master's degree in math education from Jacksonville University and a Master of Arts in creative writing from National University.

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