 When we're looking at the income tax formula, we're focused on line one, that being income. Remembering that the first half of the income tax formula is in essence an income statement which makes sense with an income tax, although a strange income statement where we have income up top and then the expenses are basically in the form of deduction to get down to not net income, but taxable income. We're focused up top on the income line which is deceptively small here, but note that we can expand that income line to think about the vast amount of things that might be included as income and the types of things that might be able to be exempt from income. The general rule from the IRS is that everything is basically income unless the IRS code says that it is specifically exempt. Here we're gonna be talking about interest income which is usually gonna have to be included in income and possibly have a sub-schedule in some cases. The schedule B, so if it's included in income, that's usually bad from a tax perspective because it'll increase the taxable income and therefore the tax will be applied to it. However, there might be some kinds of interest income that are exempt. So in that case, the tax code specifically saying yes you had income but it's exempt for taxes and therefore you might have to report it on the tax return but not include it as taxable income meaning it's not gonna have an increase in the taxable income rate to be applied to it. Okay, now when we're thinking about the reporting forms for the interest income, the form will generally be a 1099 INT, the 1099 interest. It might not look like this because they might kind of truncate it a little bit when it comes from your financial institution, oftentimes a bank or other kind of financial institution and usually we have this box one which would be the normal kind of interest income which we would have to apply but you could also have box two, early withdrawal penalty, box three, interest on US saving bond and treasury obligations, box four, federal income tax withheld, often not the case with holdings that is when you have interest income although if you have a lot of interest income, you can set your withholdings in it, investment expenses, foreign tax paid. So if there's a foreign situation with it, then you have mixing, upping or problems with the tax code between us and foreign countries. So we have to have agreements possibly with foreign countries so that we don't have like a double taxation type of situation for the same income, foreign country or US possession, tax exempt interest. So now we're talking about that type of interest that might be exempt for taxes and then specified private activity bond, market discount, bond premium, bond premium on treasury obligations, bond premium on tax exempt bond and then tax exempt and tax credit bond, the CUSIP. So some of these boxes are less common than others if you see something in here in a box that you're not familiar with, then you can of course look at the instructions and you get some more information about what is included in that particular box and that can also lead you on the journey of pursuing more questions about it if there's some more of an unusual type of situation. Now remember the general rule, why would the bank or financial institution issue the 1099 interest? Because the government is basically gonna be regulating the financial institution. So obviously you're gonna get the 1099 interest, the government's wanting them to give it also to the government, to the IRS. Therefore if you don't report something that's on the 1099 interest, you will almost surely get some kind of notice from the IRS saying we got a 1099 that you didn't get and have some kind of adjustment out related to it.