Understanding IRS Schedule B: Interest and Ordinary Dividends
Schedule B reports taxable interest and dividend income when exceeding IRS thresholds.
When Is Schedule B Required?
- Interest income exceeding $1,500 annually
- Dividend income of any amount (must be reported)
- Ownership of foreign financial accounts
- Receipt of foreign trust distributions
Even if not required, filing Schedule B can help document income sources.
Information You'll Need to Report
- Financial institution names and payer details
- Taxable amounts from all 1099-INT/1099-DIV forms
- Foreign account details (maximum values, country)
- Tax-exempt interest (for informational reporting)
Special Considerations
- Interest from Treasury bonds is taxable federally
- Municipal bond interest may be state-taxable
- Foreign tax credits may apply to international dividends
- Accrued interest must be reported even if not received
Related Tax Documents
- Form 1040 (Main tax return)
- Form 1099-INT (Interest income)
- Form 1099-DIV (Dividend income)
- FinCEN Form 114 (FBAR for foreign accounts)
- Form 8938 (Foreign asset reporting)
Need Help With Investment Income Reporting?
KARME Tax Services specializes in:
- Accurate Schedule B preparation
- Foreign account compliance
- Dividend income optimization
- Interest income tax strategies
Call 972-519-0041 or Schedule Online
Get documentation review before filing deadlines