When Would an Individual Have to Fill Out Form 1040 Schedule B?

When Would an Individual Have to Fill Out Form 1040 Schedule B?

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.

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.