Question

Kailani has a bank account at lending bank. she received form 1099-int, interest income, shown below. she has no other interest or dividends to report. where should this income be reported on kailani's tax return?

Answer 1

Interest income from Form 1099-INT should be reported on Kailani's tax return on the "Interest income" line of the Form 1040 or 1040-SR, and on Schedule B if required.

Step-by-step explanation:

Kailani has received a Form 1099-INT, which reports interest income earned from her bank account at Lending Bank. This type of income is typically reported on a U.S. tax return using the Form 1040 or 1040-SR. Specifically, the interest income reported on Form 1099-INT should be included on Schedule B (Form 1040) if required and on the line for "Interest income" on the Form 1040 or 1040-SR.

It is important for Kailani to report all taxable interest income on her tax return, even if it is not a large amount. Failure to do so could result in penalties or interest from the IRS. If the total interest income is less than $1,500 and there are no other conditions requiring Schedule B, it can be reported directly on the Form 1040 or 1040-SR without needing to attach Schedule B.

Answer 2

Kailani should report the interest income from her Form 1099-INT on her federal tax return, either on Schedule B or directly on Form 1040 in the 'Interest and Ordinary Dividends' section, depending on the total amount of her interest income.

Step-by-step explanation:

The income reported on Form 1099-INT for interest income that Kailani received from the lending bank should be reported on her federal tax return as income. Specifically, this interest income should be included on Schedule B (Form 1040A or 1040) if required or directly on Form 1040 (or 1040A) in the section for 'Interest and Ordinary Dividends' under the 'Income' category. If Kailani is required to fill out a Schedule B, she would list the total interest amount on Line 1. However, if the total amount of interest she received during the year is less than the threshold requiring a Schedule B, she would report it directly on her Form 1040 without needing to complete Schedule B.

As Kailani does not have any other interest or dividends to report, she does not need to concern herself with complicating her tax filing with additional schedules for other types of income. It is important to report this income to avoid any discrepancies with the IRS, as they will have received a copy of the Form 1099-INT from the lending bank as well.