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Wendy Reed
Wendy Reed, Enrolled Agent
Category: Tax
Satisfied Customers: 3346
Experience:  15+ years tax preparation and tax advice.
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What is taxable interest?

Taxable interest would be any interest that you received/earned from a bank account, CD, mortgage that you hold, personal loan that you hold, etc.
Banks are required to mail you a form 1099INT if they pay you 10$ per year or more in interest. However, if you do not get a 1099INT and you earned interest, it is still your responsibility to report it. You should review your year-end or December bank statements to look for year to date interest. If you hold any loans yourself, then you should have a record of payments made to you, and how much of the payments represent interest.

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Question

I'm doing my tax returns and I don't know what taxable interest is or how to calculate it.

Submitted: 9 years ago.
Category: Tax
Expert:  Wendy Reed replied 9 years ago.

Taxable interest would be any interest that you received/earned from a bank account, CD, mortgage that you hold, personal loan that you hold, etc.

Banks are required to mail you a form 1099INT if they pay you 10$ per year or more in interest. However, if you do not get a 1099INT and you earned interest, it is still your responsibility to report it. You should review your year-end or December bank statements to look for year to date interest. If you hold any loans yourself, then you should have a record of payments made to you, and how much of the payments represent interest.