How should interest income from a savings account be reported by a taxpayer?

Interest income from a savings account is reported on Form 1040, Line 2b. This line specifically captures interest income received during the tax year, which includes earnings from savings accounts, bonds, and other sources of interest. Reporting it here allows the IRS to see a taxpayer's total income accurately, which is necessary for determining tax liability.

Form 1099-INT is important because it is the document that financial institutions provide to taxpayers to report the amount of interest earned. However, the actual reporting of that interest on a taxpayer’s individual return happens on Form 1040. Additionally, while Schedule B comes into play if the total interest income exceeds a certain threshold or if the taxpayer has specified types of interest income requiring further breakdown, it is not the primary reporting location for interest income under normal circumstances.

Understanding this clarification helps taxpayers ensure that they report their earnings correctly, adhering to tax regulations and reporting requirements.