TurboTax / Tax Calculators & Tips / All Tax Guides / IRS Tax Forms / Video: Guide to Schedule B: Interest and Dividend Income

Video: Guide to Schedule B: Interest and Dividend Income

Updated for Tax Year 2014


OVERVIEW

Did you earn more than $1,500 in interest or dividend income? Or cash in a U.S. savings bond? You may be able to exclude some of this interest from your 1099-INT form. Watch this video to find out more about Interest and Dividend income.


Get every deduction you deserve

TurboTax Deluxe searches more than 350 tax deductions and credits so you get your maximum refund, guaranteed.

For only $54.99*
Start for Free

Hello, I'm Jill from TurboTax, with important news for taxpayers who earn interest or dividend income.

Did you receive a 1099-DIV or 1099-INT form this year? If so, you may need to file a Schedule B with your tax return.

The Internal Revenue Service requires a Schedule B form in a number of situations, but for the average taxpayer, the two most common reasons are earning more than $1,500 of interest or dividend income (from savings accounts or stocks, for example) and to exclude the interest you earn on certain U.S. savings bonds from your tax return.

The Schedule B has three sections: interest, ordinary dividends and foreign accounts and trusts. To complete the interest section, you need to separately report the name of each institution that sends you a 1099-INT form and the amount of interest it reports. For example, if you have a savings account, your bank will send you a 1099-INT by January 31 with your annual interest earnings reported in box 1. And if you cash in any type of U.S. savings bond, you will receive an additional 1099-INT that reports the bond interest in box 3.

If you use the proceeds of a series EE or I U.S. savings bond to finance your education or the education of a spouse or dependent, you may be eligible to exclude some of the interest from your taxable income. However, you will need to calculate the amount of interest you can exclude on Form 8815 before reporting the excluded interest on Schedule B.

You report dividends on Schedule B in the same way as interest, but instead, you transfer the payor information and the total ordinary dividend payments reported in box 1a from each 1099-DIV you receive. Although you must prepare a Schedule B when the combined total of interest and ordinary dividend income you earn is greater than $1,500, reporting more than $1,500 in either the dividend or interest sections of Schedule B requires you to complete the foreign accounts and trusts section, which asks a number of questions about the foreign financial accounts you have an interest in, if any.

Not sure which forms to use? When you file with TurboTax, you don't need to know a thing about tax forms. We'll ask you simple, plain-English questions, fill in all the right forms and do all the math behind the scenes.

The above article is intended to provide generalized financial information designed to educate a broad segment of the public; it does not give personalized tax, investment, legal, or other business and professional advice. Before taking any action, you should always seek the assistance of a professional who knows your particular situation for advice on taxes, your investments, the law, or any other business and professional matters that affect you and/or your business.

* Important Offer Details and Disclosures
  • Try for Free/Pay When You File: TurboTax online and mobile pricing is based on your tax situation and varies by product. Actual prices are determined at the time of print or efile and are subject to change without notice. Special discount offers may not be valid for mobile in-app purchases.
  • TurboTax CD/Download products: Price includes tax preparation and printing of federal tax returns and free federal efile of up to 5 federal tax returns. Additional fees apply for efiling state returns. E-file fees do not apply to New York state returns. Prices subject to change without notice.
  • TurboTax Mobile: Actual prices are determined at the time of print or efile and are subject to change without notice. Come back here before you file to confirm that the price has not changed, especially if it's been a while since you downloaded this app.
  • Anytime, anywhere: Internet access required; standard message and data rates apply to download and use mobile app features and content. TurboTax mobile app devices supported include Android 4.1 and above, iOS 8 on iPhone 4s and above, and iPad 2.
  • Fastest refund possible: Fastest tax refund with efile and direct deposit; tax refund timeframes will vary.
  • Pay for TurboTax out of your federal refund: A $34.99 Refund Processing Service fee applies to this payment method. Prices are subject to change without notice.
  • About our TurboTax Product Experts: Customer service and product support (phone or chat) vary by time of year. Phone support not included with Free Edition.
  • About our credentialed tax experts: Live tax advice service is available for your toughest tax questions; fees may apply. Service, experience levels, hours of operation and availability vary, and are subject to restriction and change without notice. Click here for full terms and conditions. Not available for TurboTax Business customers.
  • Get up to 10% on top of your federal refund: Amazon.com Gift Card offer is for federal refunds only. Limits apply ($2000 per e-card, maximum $10,000 per customer). Offer available only for TurboTax Online (except Federal Free Edition) or CD/download versions sold and shipped, or downloaded directly from Intuit or Amazon. Except as required by law, Amazon.com Gift Cards cannot be canceled, transferred for value or redeemed for cash.

    Amazon.com is not a sponsor of this promotion. Except as required by law, Amazon.com Gift Cards ('GCs') cannot be transferred for value or redeemed for cash. GCs may be used only for purchases of eligible goods at Amazon.com or certain of its affiliated websites. For complete terms and conditions, see www.amazon.com/gc-legal. GCs are issued by ACI Gift Cards, Inc., a Washington corporation. All Amazon ®, ™ & © are IP of Amazon.com or its affiliates. No expiration date or service fees.
  • #1 best-selling tax software: Based on aggregated sales data for all tax year 2013 TurboTax products.
  • 4.8 out of 5 stars: Average based on customer ratings on TurboTax.com for TurboTax Online and CD/download products tax year 2014, as of January 2015.
  • Most Popular: TurboTax Deluxe is our most popular product among TurboTax Online users with more complex tax situations.
  • TurboTax CD/Download priority phone support: Priority phone support for TurboTax CD/Download Premier and Home & Business is accessible exclusively via the TurboTax.com Help Center.
  • Benefit Assist: After you file, TurboTax automatically shows you a full list of government benefits you may qualify for, like Food Stamps or reduced phone & utilities. Plus, we help you apply, saving you time and making it easier than ever to get more money! Estimate based on calculation of Benefit Assist users from tax year 2013 and published reports of average benefit and savings amounts from federal and state programs. Actual amounts and qualifications based on your individual situation; some individuals will not qualify. Feature may not be available for all customers.
  • Simplified State Experience: New, simplified state tax preparation available for most filers.
  • Eligibility for $25 cash back for returning Deluxe customers: Customers who have completed their 2013 taxes in TurboTax Deluxe (CD or download), and have completed their 2014 taxes in either TurboTax Premier or TurboTax Home & Business (CD or download), and apply here before 11:59PM PDT April 20, 2015, are eligible for $25 back. 2014 TurboTax Advantage users are ineligible for this offer. Terms and conditions are subject to change without notice.
  • $0 Upgrade Offer: Valid for customers who filed their 2013 taxes with TurboTax Deluxe (CD or download), completed prior year data transfer this year, and encounter an upgrade to either 2014 TurboTax Premier or 2014 TurboTax Home & Business (CD or download). Valid February 6, 2015 through April 20, 2015. TurboTax Advantage users are ineligible for this offer. This offer may not be combined with our $25 cash back offer. Terms and conditions are subject to change without notice.