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I just got my forms to file my tax returns today. 

I don't understand what "Taxable Interest" means.  I have a savings account, checking account, CD, and IRA.  All of these accumulate interest.  Is the taxable interest the sum total of all the interest these things have accumulated over the year?

Thanks

I'm not an accountant, but to the best of my knowledge, yes.

Each interest earning investment should send you a form to use on your taxes.  CDs and savings will have them, and IRAs don't necessarily.  If you use TurboTax or something like that, it's pretty easy, as they ask for the forms specifically by number.

Yes - interest you get in savings are taxable and thus must be considered.

I think TurboTax offers a free online service that covers simple filings.  Sounds like that will fit your needs.  

Anything for which you receive a Form 1099-INT will be taxable interest.  Interest earned in your IRA is not included in the "taxable interest" box.  Municipal interest (like if you have state or city bonds) are generally not taxable either.  Best bet, accumulate your Forms 1099-INT and report that figure.

Where do I get my forms 1099-INT?

They will be mailed to you.

Most banks now have 1099 information available through their websites as well.

Next question:

On the 1040EZ sheet it only asks for federal tax withholding.

Is there a separate sheet for state tax witholding?

Last year, I got back almost all my federal and state taxes back.       

What state do you live in?  FL has no state income tax.

Yes.  There is a separate form for your state taxes, if your state has a state income tax.  In Florida, there is no state income tax.

I live in Massachusetts

Turbo Tax.  It's easy.  I think the base package is free, or you can pay something pretty cheap (like $40) for some of the expanded help.  Try it out.  They walk you through everything.