Schedule B Tax Form 1040 Instructions Interest and Dividends
Schedule B (Tax Form 1040) Instructions – Interest and Dividends Skip to content
You own shares of Apple, Amazon, Tesla. Why not Banksy or Andy Warhol? Their works’ value doesn’t rise and fall with the stock market. And they’re a lot cooler than Jeff Bezos.
Get Priority Access You only need to complete Schedule B and attach it to your Form 1040 if one of the following situations applies: You received more than $1,500 of taxable interest or dividend income during the tax year.You received interest from a seller-financed mortgage and the buyer used the property as their personal residence.You have accrued interest income from a bond. This happens when you buy a bond between interest payment dates and pay the accrued interest to the seller.You need to report original issue discount (OID) income that is less than the amount shown on Form 1099-OID. OID is a special type of interest that’s most common when someone buys a bond for less than its face value. The difference between the face value and purchase price of a bond is its OID.You need to reduce your interest income from a bond by the amount of amortizable bond premium. A bond premium occurs when you buy a bond for more than its face value. The amortizable bond premium is the amount you paid above the bond’s face value.You are claiming the exclusion of interest from series EE or I U.S. savings bonds issued after 1989. Check out the instructions included with Form 8815 for the rules for deducting this interest.You received interest or ordinary dividends as a nominee. This happens when the account is in your name, but the income actually belongs to someone else.You had a financial interest in, or signature authority over, a financial account in a foreign country or were involved in a foreign trust. If none of the above situations apply, you can simply report your interest and dividend income directly on lines 2 and 3 of Form 1040.
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By Janet Berry-Johnson Date January 30, 2022FEATURED PROMOTION
One of the main reasons to invest your money is to make more of it by earning interest and dividends. You earn interest from loaning your money to banks in the form of savings accounts, certificates of deposit, bonds, or peer-to-peer loans. You earn dividends by investing in stocks or private businesses. But that income isn’t free. You have to pay taxes on it. That’s where IRS Schedule B comes in.What Is IRS Schedule B
IRS Schedule B is the tax form used to report interest and dividend income, but you might not need to use it, even if you have these types of income.You own shares of Apple, Amazon, Tesla. Why not Banksy or Andy Warhol? Their works’ value doesn’t rise and fall with the stock market. And they’re a lot cooler than Jeff Bezos.
Get Priority Access You only need to complete Schedule B and attach it to your Form 1040 if one of the following situations applies: You received more than $1,500 of taxable interest or dividend income during the tax year.You received interest from a seller-financed mortgage and the buyer used the property as their personal residence.You have accrued interest income from a bond. This happens when you buy a bond between interest payment dates and pay the accrued interest to the seller.You need to report original issue discount (OID) income that is less than the amount shown on Form 1099-OID. OID is a special type of interest that’s most common when someone buys a bond for less than its face value. The difference between the face value and purchase price of a bond is its OID.You need to reduce your interest income from a bond by the amount of amortizable bond premium. A bond premium occurs when you buy a bond for more than its face value. The amortizable bond premium is the amount you paid above the bond’s face value.You are claiming the exclusion of interest from series EE or I U.S. savings bonds issued after 1989. Check out the instructions included with Form 8815 for the rules for deducting this interest.You received interest or ordinary dividends as a nominee. This happens when the account is in your name, but the income actually belongs to someone else.You had a financial interest in, or signature authority over, a financial account in a foreign country or were involved in a foreign trust. If none of the above situations apply, you can simply report your interest and dividend income directly on lines 2 and 3 of Form 1040.