Income — Wages, Interest, etc. Workout

Interest Income

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Skills Warm Up: Taxable Interest

Question 1 of 2

Bob holds a promissory note for a cash loan that he made to his brother-in-law, Stan. Stan pays Bob principal and interest each month. Bob received $2,000 in interest, but did not receive a Form 1099-INT. How should he report this income?

He enters the amount directly on Form 1040

He enters the amount on Schedule B and files it with his tax return

He is not required to report this income because he did not receive a Form 1099-INT for it

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Publication 4012, Schedule B – Interest and Dividends
Form 1040 Instructions
Schedule B, Interest and Ordinary Dividends

Publication 4012, Schedule B – Interest and Dividends

Form 1040 Instructions

Schedule B, Interest and Ordinary Dividends