Schedule B: Interest and Ordinary Dividends
What is Schedule B?
Use Schedule B to report the interest and dividend income you receive during the tax year. However, you don’t need to attach a Schedule B every year you earn interest or dividends. You are only required to file a Schedule B when the total exceeds certain thresholds. In 2014 for example, a Schedule B is only necessary when you receive more than $1,500 of taxable interest or dividends.
Schedule B has three sections:
- Part I Interest,
- Part II Ordinary Dividends, and
- Part III Foreign accounts and trusts.
Most types of interest you earn are subject to federal income tax. This includes interest earned in your bank savings account and any interest earned from corporate bonds. However, you can exclude certain savings bonds from your tax return.
Generally, if you are required to report earned interest on your return, you will receive a form 1099-INT from your bank or the paying entity.
Ordinary dividends are distributions by corporations to their shareholders. Although not all stocks pay dividends, most such payments are taxable. For every stock you own that did pay a dividend, you will receive a form 1099-DIV from the paying corporation.
If you have any foreign accounts or trusts, you are required to disclose it in Part III of Schedule B. You may be required to file U. S. Treasury Department Form FinCEN 114, Report of Foreign Bank and Financial Accounts (FBAR). This form replaces form TD F 90-22.1, and is not available in TurboTax or from the IRS, and is not filed with your tax return.
FinCEN Form 114 must be obtained from the Bank Secrecy Act's Financial Crimes enforcement Network and filed electronically on their website. You can also call them at Telephone Numbers for FBAR and Title 31 Help
After entering your 1099 forms, TurboTax determines if you need to file a Schedule B for you.
If you've already gone through the step-by-step interviews, jump directly to the entry screen for this topic:
- Select Federal Taxes (Personal tab in the Home & Business edition).
- Select Wages & Income, and in the new screen, click Explore on My Own.
- Scroll down the Your Income Summary screen until you see the Interest and Dividendsgroup.
- Click on the Start/Update button next to the category of 1099 you need to enter (1099-DIV, 1099-INT, or 1099-OID).
- Follow the prompts.