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For a large number of taxpayers, reporting interest and dividends on investments is very simple. Just collect all the 1099-INT and 1099-DIV forms
you receive at the beginning of 2008, enter the amounts in Schedule B of Form 1040 or Schedule 1 of Form 1040A, add up the totals, transfer them to the front page of your main tax form, and you're done.
However, if you bought or sold any investments during the year, or if you had any of the many types of investments that followed special rules, including mutual funds, tax-free municipal bonds or bond funds, U.S. Savings Bonds, OID interest, nominee interest, amortizable bond premiums, accrued interest, foreign investments, or income from partnerships, S-corporations, trusts, or estates, your situation will be a little more complicated. In this section, we'll discuss the rules for reporting:
You may also have some investment-related deductions for interest, investment advice, financial publications or software, or custodial fees. We'll help you deal with those as well.
If you have a child with investment income, you may have the option to report that income on your own return, or to file a separate tax return for the child.
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