Schedule B: Interest, Dividends and Certain Capital Gains and Losses (2025)
Massachusetts · Massachusetts DOR · Used for tax years 2025
Massachusetts Schedule B reports interest, dividends, short-term capital gains and losses, and certain long-term capital gains for 2025. It calculates taxable amounts for Form 1 or Form 1-NR/PY and Massachusetts short-term losses available to carry over to 2026.
What you'll need
Have the following forms and information available, as applicable:
- U.S. Form 1040: Lines 2a and 2b for interest income, and line 3b for ordinary dividends if you did not file U.S. Schedule B.
- U.S. Schedule B: Part II, line 6 for ordinary dividends, if filed.
- Massachusetts Form 1 or Form 1-NR/PY: For Massachusetts bank interest and other amounts referenced on Schedule B.
- U.S. Schedule D: Lines 1 through 5, column h for short-term gains and losses.
- Massachusetts Schedule D: Line 12 for long-term gains on collectibles and pre-1996 installment sales.
- U.S. Form 4797: For gains or losses on business property held for one year or less.
- Massachusetts Schedule C-2: For allowable trade or business deductions.
- 2024 Massachusetts Schedule B: Line 40 for prior unused short-term losses.
Enclose statements for other interest and dividends reported on line 3 and exclusions reported on line 6a. The form also refers to worksheets for certain calculations.
Common mistakes
- Leaving Part 3 unfinished: The form explicitly reminds you to complete Schedule B, Part 3, on the other side.
Questions people ask
What if I did not file federal Schedule B?
For ordinary dividends on Massachusetts Schedule B, line 2, use U.S. Form 1040, line 3b if you did not file U.S. Schedule B.
When can I skip Part 2?
Skip Part 2, lines 10 through 28, and go to Part 3, line 29 if you have none of the following: short-term capital gains or losses, long-term capital gains on collectibles, pre-1996 installment sales, short-term gains or losses from the sale, exchange or involuntary conversion of business property, or Massachusetts short-term loss carryovers from a prior year.
How much short-term loss can I apply against interest and dividends on line 20?
Enter the smaller of line 9 or line 19c, treating line 19c as a positive amount. The amount cannot exceed $2,000.
Where do I report short-term losses available to carry over to 2026?
On this 2025 schedule, enter the amount from line 23 on line 40. If you did not complete line 23, enter 0 on line 40.