1040EZ Tips for Line 2

Video Transcript

"I'm going to talk now about line two on the form 1040EZ. This is taxable interest. Remember if your total interest is over $1,500, you cannot use form 1040EZ. Each payer should send you a form 1099INT or a form 1099OID detailing the interest that they paid you. You want to include taxable interest from banks, savings and loan associations, credit unions, savings bonds, any type of interest that you received during 2007. If you had interest that was credited to you on deposits that you cannot withdraw because of bankruptcy or insolvency, you may be able to exclude part of that interest from your 2007 income. You may have tax exempt interest that you received from municipal bonds. If this is true, then you can exclude this from your line two, taxable interest amount. If you received interest on deposits that you cannot withdraw because of bankruptcy or insolvency of the financial institution, you should be able to exclude part or all of that interest from your taxable income."