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Basic Course > Income—Wages, Interest, etc.

Income — Wages, Interest, etc.

This is the first of several lessons that cover the Income section of Form 1040. A critical component of completing the taxpayer's return is distinguishing between taxable and nontaxable income and knowing where to report the different types of income.

This lesson covers wage and tip income, education-related income, as well as interest and dividend income.

Click the Skills Workout button to learn more about Income.

Skill Check

Check your understanding of the Income found on Form 1040. Indicate whether each of the statements below is true or false by clicking on the correct answer. To check your answers, click the Check My Answers button at the bottom of the page.

  1. A Form W-4 is used to report wage and tax information to employees.
  • A.
  • B.
  1. Tip income is not subject to federal income tax.
  • A.
  • B.
  1. All interest income is taxable.
  • A.
  • B.
  1. Form 1099-INT may be used to report tax-exempt interest income.
  • A.
  • B.