Uriah received the following interest payments:Interest of $400 on an overpayment of a previous year's Federal income taxesInterest of $300 on an award received for money lost due to fraud by his previous investment advisorInterest of $1,500 on municipal bondsInterest of $1,000 on US savings bonds. What amount, if any, should Uriah report as taxable interest income?

Question

Ashly Rojas

Business

28 November, 16:10

Uriah received the following interest payments:Interest of $400 on an overpayment of a previous year's Federal income taxesInterest of $300 on an award received for money lost due to fraud by his previous investment advisorInterest of $1,500 on municipal bondsInterest of $1,000 on US savings bonds. What amount, if any, should Uriah report as taxable interest income?

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Answers (1)

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Bernard Chan · Answer 1

C) $1,700

Explanation:

Uriah should report as taxable income the interest received from the overpayment of federal income taxes ($400) + the money awarded to him in a lawsuit against his previous investment advisor ($300) + interests on US savings bonds ($1,000) = $1,700

Interest gained on municipal bonds isn't included in his income taxes and only injury settlements are not included in gross income.