What is included in Line 2b of Form 1040?

Line 2b of Form 1040 is specifically designated for reporting taxable interest income. This includes interest earnings from various sources such as savings accounts, certificates of deposit (CDs), and other financial instruments that yield interest. Taxpayers must report this income because it is considered taxable by the IRS and is included in a taxpayer's overall income for the year.

In the context of the other options: taxable wages from employment are reported on Line 1 of Form 1040, while tax refunds from previous years are not included in the current year’s income calculation; they are typically reported on Schedule A if the taxpayer itemizes. Capital gains from asset sales are recorded in a different section, as they are reported on Schedule D if they need to be accounted for in the broader income tax return.