This form is used to list the interest and dividend income a taxpayer received during the tax year.
- Interest: Lists the total interest income you received for the year. This might include interest from savings accounts, certificates of deposit (CDs), bonds, or any other type of investment. If you received more than $1,500 in total interest for the year, you're required to fill out this part of Schedule B. You need to list each payer (like a bank or corporation) separately, plus the amount they paid you.
- Ordinary Dividends: Payments you receive from owning stocks or mutual funds. Just like with interest, if you received more than $1,500 in dividends during the year, you're required to fill out this section of Schedule B. You need to list each payer and the amount they paid you.
After listing all your interest and dividends and summing them up, you then carry these totals over to your Form 1040.
Remember, it's important to report all of your interest and dividend income, even if it's less than $1,500. Also, keep in mind that some interest and dividends can be tax-exempt or taxed at special rates.