I need this explanation in own words

LO 2.9Identify the tax treatment of interest and dividend income.

Interest or dividend income a taxpayer receivesorthat is credited to his or her account (does not need to be withdrawn or used) is taxable income, unless specifically exempt from tax.Exempt items include:state or municipal bond interest

1. When interest or dividends total >$1,500, the taxpayer is required to file Schedule B of Form 1040, which instructs the taxpayer to list the amounts and sources of the income.
2. The fair market value of gifts or services a taxpayer receives for making long-term deposits or opening accounts in savings institutions is also taxable interest income.
3. Interest is reported in the year it is received by a cash basis taxpayer.