Question

Steven (45) and Dawn (46) are married, and they will file a joint return. During the year, they earned investment income consisting of:

• $200 interest income from a savings account with their local bank, reported on Form 1099-INT.

• $350 interest income from a certificate of deposit held with another local bank, reported on Form 1099-INT.

• $100 in dividends from a savings account with a local credit union, reported on Form 1099-INT.

• $250 interest income from a U.S. Treasury note, reported on Form 1099-INT.

• $500 tax-exempt interest income from a municipal bond investment, reported on Form 1099-INT.

• $1,700 in ordinary dividends from a mutual fund investment, reported on Form 1099-DIV.

Complete Steven and Dawn's Schedule B (Form 1040), Interest and Ordinary Dividends.

Answer 1

Tax Exempt Interest PARTICULARS INTEREST INCOME FROM SAVING INTEREST INTEREST INCOME FROM CERTIFICATE DEPOSITE DIVIDEND FROM SAVING ACCOUNT WITH LOCAL CREDIT UNION INTEREST INCOME FROM US TREASURY NOTE TAX EXEMPT INTEREST FROM MUNICIPALITY BOND ORDINARY DIVIDEND GROSS TOTAL INCOME AMOUNT($) 200.00 350.00 100.00 250.00 500.00 1,700.00 3,100.00 INCOME EXEMPT DIVIDEND FROM SAVING ACCOUNT DIVIDEND FROM TRASURY NOTE TAX EXEMPT INTEREST FROM MUNCIPALITY BOND NET TAXABLE INCOME 100.00 250.00 500.00 850.00 2,250.00