Schedule B: Interest and Ordinary Dividends (2024)

Who files this form

Use Schedule B for tax year 2024 if any of these apply:

• You had over $1,500 of taxable interest or ordinary dividends.
• You received interest from a seller-financed mortgage and the buyer used the property as a personal residence.
• You have accrued interest from a bond.
• You are reporting original issue discount (OID) below the amount shown on Form 1099-OID.
• You are reporting interest below the amount shown on a Form 1099 because of amortizable bond premium.
• You are claiming the interest exclusion for series EE or I U.S. savings bonds issued after 1989.
• You received interest or ordinary dividends as a nominee, meaning the income was in your name but belonged to someone else.
• You had a financial interest in, or signature authority over, a foreign financial account.
• You received a distribution from, were a grantor of, or transferred property to a foreign trust.

Complete Part III if you had over $1,500 of taxable interest or ordinary dividends, had a foreign account, or received a distribution from, were a grantor of, or were a transferor to a foreign trust.

When it's due

The supplied text does not state a filing deadline for 2024 Schedule B.

For a calendar-year foreign trust for tax year 2024, Form 3520-A is due March 17, 2025. If you were treated as the owner under the grantor trust rules, you are responsible for ensuring that the foreign trust files that form.

What you'll need

Have the following information and forms available, as applicable:

• Interest statements: Forms 1099-INT, 1099-OID, or substitute statements showing taxable interest.
• Dividend statements: Forms 1099-DIV or substitute statements. Ordinary dividends should appear in box 1a of Form 1099-DIV.
• Your identifying information: Name(s) shown on your return and your Social Security number.
• Seller-financed mortgage details: The buyer’s name, address, and Social Security number. If you or the buyer do not have an SSN, use the appropriate taxpayer identification number described in the instructions.
• Form 8815: Attach this if you claim the exclusion for interest on eligible series EE or I U.S. savings bonds.
• Foreign account and trust information: Details needed to answer Part III, including the countries where accounts are located if you must file FinCEN Form 114.

If you need extra space for payers, attach statements in the same format as lines 1 and 5. Include your name and SSN, show the totals on Schedule B, and attach the statements at the end of your return.

How to file

Attach Schedule B to Form 1040 or Form 1040-SR. The supplied text does not give a mailing address or electronic filing procedure for Schedule B.

• Part I: List taxable interest by payer on line 1. List qualifying seller-financed mortgage interest first. Total the amounts on line 2, enter any savings bond interest exclusion on line 3, and subtract line 3 from line 2. Enter the result on line 4 and on Form 1040 or 1040-SR, line 2b.
• Part II: List ordinary dividends by payer on line 5. Enter the total on line 6 and on Form 1040 or 1040-SR, line 3b.
• Part III: Complete the foreign account and trust questions when required.

For Forms 1099 or substitute statements from a brokerage firm, list the firm as the payer and enter the interest or ordinary dividends shown on the statement.

Related foreign reporting forms are filed separately:

• If required, electronically file FinCEN Form 114 with Treasury’s Financial Crimes Enforcement Network. Do not attach it to your tax return. See FINCEN.gov for filing requirements.
• Do not attach Form 3520 to Form 1040 or 1040-SR. File it at the address shown in its own instructions.

Common mistakes

• Putting tax-exempt interest on line 1. Do not report it there. The instructions direct tax-exempt interest to Form 1040 or 1040-SR, line 2a. Market discount on a tax-exempt bond, however, is taxable interest.
• Skipping Part III when required. It is required if line 4 or line 6 is over $1,500, and also for the foreign account or trust situations described on the form.
• Leaving out seller-financed mortgage details. You must provide the buyer’s name, address, and SSN and let the buyer know your SSN. Failure to do so may result in a $50 penalty.
• Assuming no FBAR means no foreign reporting. Answer “Yes” to the first question on line 7a if you had the stated foreign account interest or signature authority, even if you do not have to file FinCEN Form 114. Form 8938 may also be required regardless of whether an FBAR is required.
• Missing a required FBAR filing. Failure to properly file FinCEN Form 114 can result in substantial penalties.

Questions people ask

Can I list more than one payer in an entry space?

Yes. Clearly show the amount next to each payer’s name, then enter their combined total in the “Amount” column. If you need more room, attach separate statements and keep the totals on Schedule B.

What if the interest or dividends in my name belong to someone else?

Report the full amount on line 1 for interest or line 5 for ordinary dividends. Below a subtotal, enter “Nominee Distribution” and the amount belonging to others. Subtract it to determine line 2 or line 6. You must also give the actual owner the corresponding Form 1099 unless the owner is your spouse, and file Form 1096 and the corresponding Form 1099 with the IRS.

Can I exclude savings bond interest used for education?

If you cashed series EE or I U.S. savings bonds issued after 1989 during 2024 and paid qualified higher education expenses for yourself, your spouse, or your dependents, you may be able to exclude some or all of the interest. See Form 8815 for details and attach it if claiming the exclusion.

Does an account at a U.S. bank’s foreign branch count as a foreign account?

Yes. The account’s physical location controls. An account at a U.S. bank branch outside the United States is a foreign financial account. An account at a foreign bank branch physically located in the United States is not.

Official sources

• https://www.irs.gov/pub/irs-prior/f1040sb--2024.pdf
• https://www.irs.gov/pub/irs-prior/i1040sb--2024.pdf