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Ask a CPA: Tax exempt income and savings?

Apr 16, 2012

If my income is tax exempt how do I file interest earned on my savings account if I do not file taxes?

Most savings accounts do not pay tax-exempt interest, but your interest received would be reported to you on a form 1099-INT and shown on your form 1040 on line 8a (for the taxable portion) and line 8b (for the Tax-exempt portion). If your interest income is >$1500 then you must also complete a Schedule ‘B’.

Answer by: Answer By: Alan Burkholder, CPA of Xenos Christian Fellowship. This question was reviewed 4/13/12.

Disclaimer: The responses are based on the limited information provided by the questioner and are intended to provide general information, not specific accounting or tax advice. The ideas are not intended or written to be used and cannot be used for the purpose of avoiding or evading taxes or penalties under the IRS code or regulations. Views expressed do not imply an opinion of the OSCPA, its officers, directors, employees, or members.