CORRECT WELL DETAILED ANSWERS|LATEST
UPDATE!!!!2025/2026|GUARANTEED PASS|GRADED
Individual receives 1099 MISC - ANSWER use to report miscellaneous income earnings
on tax returns
Taxable Interest - ANSWER Certificates of deposit
US Treasury Bills, Notes, Bonds
Bank Account--interest earned from deposits
Deposited Insurance Dividends
money market funds(should be reported as dividends)
US Savings Bonds interest
Deposited Insurance Dividends - ANSWER Interest on insurance dividend left on
deposit with insurance company that can be withdrawn annually taxable in year it is credited
to the account.
other interest for tax - ANSWER interest on refunds
interest on condemnation award
interest on annuity
usurious interest
below-market loan
bonds sold between interest dates
NON-Taxable interest - ANSWER Qualified Volunteer Fire Department
1
, State and Political Subdiv.
District of Columbia
Private activity bonds
US Possessions and Political Subdiv.
Port Authorities
Toll-road Commissions
Interest on IRA
Utility Service Authority
Comm/ Redevelopment Agencies
Municipal Mutual funds
Form 1040 line 2A - ANSWER Tax exempt interest
Form 1040 Line 2B - ANSWER Taxable interest
Form 1099-INT - ANSWER a statement of the interest your bank paid on your savings
for the year
Form 1099-OID - ANSWER Statement showing Original Issue Discount
Dividend Income - ANSWER income received in the form of dividends paid on shares
of stock or mutual funds
Ordinary Dividends - ANSWER Distributions from corporations paid out of earnings
and profits taxed as ordinary income.
--Any dividend received on common or preferred stock is ordinary unless dictated by the
corporation
2
UPDATE!!!!2025/2026|GUARANTEED PASS|GRADED
Individual receives 1099 MISC - ANSWER use to report miscellaneous income earnings
on tax returns
Taxable Interest - ANSWER Certificates of deposit
US Treasury Bills, Notes, Bonds
Bank Account--interest earned from deposits
Deposited Insurance Dividends
money market funds(should be reported as dividends)
US Savings Bonds interest
Deposited Insurance Dividends - ANSWER Interest on insurance dividend left on
deposit with insurance company that can be withdrawn annually taxable in year it is credited
to the account.
other interest for tax - ANSWER interest on refunds
interest on condemnation award
interest on annuity
usurious interest
below-market loan
bonds sold between interest dates
NON-Taxable interest - ANSWER Qualified Volunteer Fire Department
1
, State and Political Subdiv.
District of Columbia
Private activity bonds
US Possessions and Political Subdiv.
Port Authorities
Toll-road Commissions
Interest on IRA
Utility Service Authority
Comm/ Redevelopment Agencies
Municipal Mutual funds
Form 1040 line 2A - ANSWER Tax exempt interest
Form 1040 Line 2B - ANSWER Taxable interest
Form 1099-INT - ANSWER a statement of the interest your bank paid on your savings
for the year
Form 1099-OID - ANSWER Statement showing Original Issue Discount
Dividend Income - ANSWER income received in the form of dividends paid on shares
of stock or mutual funds
Ordinary Dividends - ANSWER Distributions from corporations paid out of earnings
and profits taxed as ordinary income.
--Any dividend received on common or preferred stock is ordinary unless dictated by the
corporation
2
