Part I. Interest

Line 1.

Report on line 1 all of your taxable interest. Taxable interest generally should be shown on your Forms 1099-INT, Forms 1099-OID, or substitute statements. Include interest from series EE, H, HH, and I U.S. savings bonds. Also include any accrued market discount that is includible in income and any gain on a contingent payment debt instrument that is includible in income as interest income. List each payer’s name and the amount. Don't report on line 1 any tax-exempt interest. See Tax-exempt interest , later, for more information.

For more information on stated interest, original issue discount (OID), market discount, contingent payment debt instruments, and premium, see Pub. 550 and Pub. 1212.

The market discount on a tax-exempt bond is taxable interest income and not tax-exempt interest.