Page 88 - Interest Income - Individuals Handbook

When to report interest income

Example
Accrual Method
 If, in the previous
 If you use an accrual example, you use an
method, you report your accrual method, you must

interest income when include the interest in
you earn it, whether or your income as you earn
not you have received it. it.
 Interest is earned over  You would report the
the term of the debt interest as follows:
instrument. • 2018, $26.67;
• 2019, $81.06; and
• 2020, $55.47.