Reporting Interest (continued)

Forms 1040 and 1040A

Taxpayers who file Form 1040A or 1040 report their taxable interest income on line 8a and their tax-exempt interest on line 8b.

First, however, Form 1040A filers must complete Schedule 1, Part I, and Form 1040 filers must complete Schedule B, Part I if they:

• Have interest income of more than $1,500
• Want to claim an exclusion for savings bond interest the same year they qualified for higher education expenses
• Received interest from a seller-financed mortgage, and the buyer used the property as a home
• Received Form 1099-INT for U.S. savings bond interest that includes amounts reported before 2008
• Received, as a nominee, interest that actually belongs to someone else
• Received Form 1099-INT for interest on frozen deposits