Does this exclude a checking account? How is this specifically calculated?
You should consult a tax professional. Many people here may not have the expertise to provide accurate advice on this topic.
Your bank should send you a 1099-INT form that lists the interest earned. If the amount is under $10, you might not receive one, but you are still required to report the income.
You don’t need a tax professional for this. Use tax software and input the values from your bank documents. Banks send 1099 forms around this time.
For example:
- A 1099-INT form will show interest income in Box 1. This includes interest from savings, money market accounts, checking accounts (if they offer interest), CDs, and banking bonuses.
- Some banks may issue a 1099-MISC for bonuses, with the bonus amount listed in Box 3 (Other Income).
- If you have brokerage accounts or held U.S. Treasuries, you might receive a mix of forms like 1099-DIV and 1099-INT with different amounts in various boxes.
Input these details into the software, and it will calculate everything for you.