What is Schedule B in tax papers?
IRS Form 1040 Schedule B is a document you use to report interest and dividend income on your federal tax return. But not all taxpayers with such income will have to file this schedule.InterestIf you received more than $1,500 in taxable interest, you must file Schedule B. List all sources of interest income and the amounts received on Part I of the schedule.Excludable InterestInterest on U.S. savings bonds is usually taxable, but Schedule B allows you to exclude the interest if you cashed in certain bonds to pay education expenses.DividendsIf you received more than $1,500 in “ordinary dividends”–those not treated like a long-term capital gain–you must file Schedule B. Use Part II of the form to list the sources and amounts of dividend income.StatementsAfter every tax year ends, you should receive a statement from any entity that paid you income reportable on Schedule B. Interest income will usually be reported on a Form 1099-INT, dividends on a 1099-DIV.Part IIIPart III of Schedule B
