Enter private activity bond interest income (2024)

FAQs

Where does specified private activity bond interest go on 1040? ›

On Form 1099-INT, specified private activity bond interest is reported in Box 9. In TaxSlayer Pro, to enter it in the tax return (Form 1040) select: Income. Interest or Dividends (Sch B, 8815)

Specified private activity bond interest is reported on IRS Form 1099-INT in your Tax Reporting Statement. The tax-exempt income reported by Fidelity includes amounts that are treated as specified private activity bond interest, if applicable.

Interest on a private activity bond is taxable unless the bond is a qualified private activity bond and meets other requirements, some of which apply to governmental bonds as well. In this section, we briefly discuss the tests for determining whether a bond is a private activity bond.

Qualified projects that may be financed by private activity bonds include funding and refinancing student loans, airports, private universities, hospitals, affordable rental housing, mortgage provision for first-time lower-income borrowers, etc.

Typically, interest from corporate bonds will be in Box 1, interest from U.S. Treasuries will be in Box 3, and tax-exempt interest from muni bonds will be in Box 8. Even if you don't have to pay income tax on the interest, you still need to include it on your tax return.

Under the Tax-exempt Interest subsection, enter any applicable fields: Certain private activity bonds (6251) (% or amount) (code 504) (box 12)

The interest will be reported under the name and Social Security Number of the person who cashes the bond or who owns it when it matures. The 1099-INT will include all the interest the bond earned over its lifetime.

1) For the i-bond you cashed, you should create a 1099-INT form the US Treasury, and put the interest in box 3. 2) For the Treasury Bills, you "probably" hold those at a brokerage. IF so, you need to get the 1099-INT form that brokerage and either import it, or enter it manually.

Yes, I bonds are subject to taxation. But they provide certain tax benefits that distinguish them from other investments and can result in lower tax payments. The original amount you invested in the bond isn't taxed, but the interest earned is.

Is interest income from bonds included in gross income? ›

Interest attributable to corporate bonds and coupon bonds is includible in the recipient's gross income.

Income from bonds issued by state, city, and local governments (municipal bonds, or munis) is generally free from federal taxes. * You will, however, have to report this income when filing your taxes. Municipal bond income is also usually free from state tax in the state where the bond was issued.

Private Activity means an activity sponsored by a private individual, business or organization that is not open to the general public. Private activities include, but are not lim- ited to, banquets, receptions, award ceremonies, weddings, concerts, dances, and seminars.

The IRS uses amounts under 26 USC §146(d) to calculate the State ceiling for the volume cap for private activity bonds. 2024 Volume Cap Formula: The greater of either (1) $125 multiplied by the state's population or (2) $378,230,000.

Tax-exempt interest.

In general, your tax-exempt stated interest should be shown in box 8 of Form 1099-INT or, for a tax-exempt OID bond, in box 2 of Form 1099-OID, and your tax-exempt OID should be shown in box 11 of Form 1099-OID. Enter the total on line 2a of your Form 1040 or 1040-SR.

1) For the i-bond you cashed, you should create a 1099-INT form the US Treasury, and put the interest in box 3. 2) For the Treasury Bills, you "probably" hold those at a brokerage. IF so, you need to get the 1099-INT form that brokerage and either import it, or enter it manually.

The 1099-INT will include all the interest the bond earned over its lifetime.