Truth 36. Reporting investment income
There are two bad things about making money off of your investments: paying taxes and filling out the paperwork to pay the taxes.
Your filing duties depend upon how much you make and the type of earnings you receive. And, in addition to another form or two to send to the IRS, you’ll likely have some worksheets to mess with, too.
But just keep reminding yourself that the added calculations will help lower your tax bill.
Interest and dividends—If your earnings consist only of interest and dividend payments and the amount of each is $1,500 or less, you can report that income directly on your Form 1040 or 1040A.
If these earnings are more, then you’ll have to fill out Schedule A if you’re a Form 1040 ...