Question

Cathy has a savings account at Wells Fargo, from which she received $600 in interest. She also has savings at Navy Federal Credit Union, from which she received $350 in dividends. Where should this income be reported on Form 1040 and/or Schedule B? Question 1Select one: a. $600 on line 2a and $350 on line 2b b. $600 on line 2b and $350 on line 3b c. $950 on line 2b d. $600 on Part I of Schedule B and $350 on Part II of Schedule B

Answer 1

The income from interest and dividends should be reported as follows on Form 1040 and/or Schedule B:

Answer: b. $600 on line 2b and $350 on line 3b

Step-by-step explanation:

Step-by-step explanation:

Interest income should be reported on line 2b of Form 1040.

Dividend income should be reported on line 3b of Form 1040.

So, in this case, $600 should be reported on line 2b for interest income, and $350 should be reported on line 3b for dividend income.