When would an individual have to fill out Form 1040 Schedule B?


Quick Answer

There are several situations that would require an individual to fill out a form 1040 Schedule B, such as having ordinary dividends or taxable interest that exceeds $1500, according to the Internal Revenue Service. Other situations that require a taxpayer to complete a form 1040 Schedule B are receiving interest from a seller-financed mortgage, if the buyer used the property as a personal residence; receiving interest or ordinary dividends as a nominee; and accruing interest from a bond.

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Full Answer

Taxpayers who are reporting original issue discount in an amount less than the amount shown on Form 1099-OID are required to file a Form 1040 Schedule B, as stated on the IRS website. Form 1040 Schedule B is also required if an individual is reducing his interest income on a bond by the amount of amortizable bond premium, or if an individual is claiming the exclusion of interest from series EE or I United States savings bonds that were issued after 1989.

Any individual who had signature authority over, or a financial interest in, a financial account in another country must file a Form 1040 Schedule B, explains the IRS. Additionally, this schedule must be filed by an individual who received a distribution from a foreign trust, or who was a grantor of, or transferor to, a foreign trust.

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