Schedule B: Interest, Dividends and Certain Capital Gains and Losses (2024)
Massachusetts · Massachusetts DOR · Used for tax years 2024
Massachusetts Schedule B for 2024 reports interest, dividends, and certain capital gains and losses for an estate or trust. It calculates taxable amounts for Form 2 and available short-term losses for carryover to 2025.
What you'll need
Have the estate or trust’s name and employer identification number ready. Depending on the entries you need to make, the form refers to:
- U.S. Form 1041 or Form 1041-QFT for interest and dividends.
- U.S. Form 1041, Schedule D, Part I for short-term capital gains and losses.
- U.S. Form 4797 for gains or losses on business property held for one year or less.
- Massachusetts Form 2 for Massachusetts bank interest reported on line 5.
- Massachusetts Schedule C-2 for allowable trade or business deductions.
- Massachusetts Schedule D, line 11 for long-term gains on collectibles and pre-1996 installment sales.
- 2023 Massachusetts Schedule B, line 41 for prior short-term losses.
- Schedule H for the expense and fiduciary compensation deduction. The form says to attach it.
Attach a list of exclusions if you report any on line 7a. Lines 29 and 34 also refer to worksheets in the instructions, which were not provided.
Common mistakes
- Forgetting to mark a loss. The form says to fill in the oval if showing a loss.
- Leaving out attachments. Attach a list of exclusions for line 7a, if any, and Schedule H for the line 37 deduction.
- Completing line 29 when it does not apply. Complete it only if both lines 13 and 28 are greater than zero. If line 28 is zero, omit line 29 and enter zero on line 30.
- Missing the line 25 routing instructions. When completing line 25, enter the result there and on line 41, omit lines 26 through 29, enter zero on line 30, and complete lines 31 through 40. Line 41 specifies that the amount from line 25 must be a loss.
- Entering negative amounts where prohibited. Lines 15c, 36, 38, and 40 must not be less than zero.
Questions people ask
Where do the interest and dividend amounts come from?
Line 1 uses interest from U.S. Form 1041, line 1, or Form 1041-QFT, line 1a. Line 2 uses dividends from line 2a of either federal form. Other interest and dividends not included above go on line 3.
How much short-term capital loss can be applied against interest and dividends on line 22?
The form says to enter the smaller of line 11 or line 21c, treating the loss as a positive amount, but not more than $2,000.
Where do the final taxable amounts go on Form 2?
The amount on Schedule B, line 39, also goes on Form 2, line 14. The amount on Schedule B, line 40, also goes on Form 2, line 23. If line 13 is greater than zero, line 40 directs you to the instructions.
Where are short-term losses available for carryover in 2025 shown?
Line 41 reports available short-term losses for carryover in 2025. Enter the amount from line 25 only if it is a loss.