do individuals have to report interest income 
most interest is taxed as ordinary income and subject to ordinary income tax rates notable exceptions include interest earned from a series ee or series i bond issued after 1989 to pay qualified higher educational expenses interest on insurance dividends left on deposit with the u s department of veterans affairs and interest on some bonds used to finance government operations however even when it s not taxable interest must be reported 12the bottom lineordinary income is taxed at marginal rates individuals pay taxes on ordinary income such as salaries tips rent and interest businesses earn ordinary income from business operations while supplying goods and services 