Interest, stock dividends, and dividend income

Interest, dividends, and capital gains are types of income that can be earned from investments. Interest income is earned from lending money, while dividends are payments made to shareholders by companies that distribute a portion of their profits. Capital gains are profits made from selling an asset, such as stocks or property, at a higher price than it was purchased for. These types of income are all taxed differently and should be reported on a tax return.