Internal Revenue Service United States Department of the Treasury
Level Basic Advanced Military International

Income — Wages, Interest, etc. Workout

Skills Workout

Certification Warm Up: Drill & Practice

  1. Is income produced by investments, such as interest on savings or dividends on stock, considered earned income?
  2. Keith has received Form W-2 for his part time job, but did not receive Form W-2 for a taxable college scholarship he won last year. Does Keith need to report the scholarship as income on his tax return?
  3. Wally claimed the standard deduction on last year's tax return for a state refund. Does he have to include the refund in his taxable income?
  4. Wendy holds a traditional IRA to which she makes contributions each year. Throughout the year, Wendy gets statements listing the interest earned. Is she supposed to pay taxes on any of this interest income?
Pub 4491, Income
Publication 17
Publication 4012, Tables of Taxable and Nontaxable Income

Pub 4491, Income

Publication 17

Publication 4012, Tables of Taxable and Nontaxable Income