A taxpayer filing $as$ Single has $$25,600of$ taxable income. Included $in$ gross income $isa1099-$ INT with Box $1$ interest income $of$ $$5,000,$ tax$-$

exempt interest $of$ $$3,000,$ and interest $onU.S.$ savings bonds $of$ $$1,200.$

Additionally, the taxpayer has $a1099-$DIV with dividend income $of$ $$3,000,of$ which $$2,000is$ qualified dividends, and capital gains distributions $of$

$$500.$

$Is$ the following statement accurate about this scenario?

The $$3,000of$ tax$-$exempt income $is$ still reported $on$ Form $1040.$