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 2012 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: interest, ordinary dividends, and foreign accounts and trusts.
What is taxable interest?
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.
What are taxable ordinary dividends?
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.
What about foreign accounts or trusts?
If you have any foreign accounts or trusts, you are required to disclosed it in this section. You will also be asked if you need to fill out form TD F 90-22.1.
Entering Schedule B into TurboTax
TurboTax will walk you through entering all the information from your 1099s. Then, if you need to file a Schedule B, TurboTax will perform all the necessary calculations for you.
If you've already gone through the step-by-step interview and want to jump directly to the entry screen for this topic, follow these directions.
- Select the Federal Taxes tab (the Personal tab in the Home & Business edition).
- Select the Wages & Income subtab.
- Scroll down the Wages & Income screen until you see the Interest and Dividends group.
- Click on the Start/Update button to the right of the category of 1099 you need to enter (1099-DIV, 1099-INT, or 1099-OID).
- Follow the prompts.
If you need to correct or change any information you have entered on your Schedule B, the steps you take depends on if you have already filed your tax return.
- If you have yet to file your return, simply navigate to the area you need to change on your Schedule B, and correct or change your information.
- For example, if you need to correct a Form 1099-DIV, navigate to that form and make your changes.
- If you have already filed your return, you will need to amend your return. Please click here for instructions.
For questions about printing, please click here.
If you have questions about the availability of form 1098-C, please click here.