I noticed that the instructions for Sch B have changed since the last time I looked. It used to be that you were to list all interest income on it, then subtract off the nontaxable interest. The instructions don't mention this anymore. When did it change?
Thanks, Gary
In 2009, payers were required to report tax-exempt interest ) on the
1099-INT. That amount should be entered in Form 1040 line 8b. It's used most often to calculate the taxable amount of Social Security income, and also to determine if there are increases to Medicare Part B premiums. If you're using software to prepare a return (e.g. Tax Wise), the tax-exempt interest should be entered on a separate worksheet line than taxable interest, otherwise it *may* be subtracted from taxable interest, which is incorrect.Have something to add? Share your thoughts — no account required.
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