[Individual]Taxable Interest Income 3 (Mar-02-2011, 48 days left)

1. U.S. obligations:

Interest on U.S. obligations, such as U.S. Treasury bills, notes, and bonds, issued by any agency or instrumentality of the United States is taxable for federal income tax purposes.

2. Interest on tax refunds: taxable

3. Interest on condemnation award

Interest to compensate for delay in payment of an award is taxable.

4. Installment sale payments

Interest payable with the deferred payments is taxable when you receive it.

5. Interest on annuity contract

Accumulated interest on an annuity contract you sell before its maturity date is taxable.

6. Usurious interest

It's interest charged at an illegal rate. Usually it is taxable as interest.

7. Interest income on frozen deposits

You can exclude the interest on frozen deposits. The amount of interest you must exclude is the interest on frozen deposits minus the sum of :

--the net amount you withdrew from these deposits during the year,

--the amount you could have withdrawn as of the end of the year.

PSQ

Source: http://www.irs.gov