Taxes For Dummies

Chapter 12

Interest and Dividend Income: Form 1040, Schedule B

IN THIS CHAPTER

Accounting for interest and dividend income

Deciphering the 1099-INT, 1099-DIV, and 1099-OID

Dealing with foreign accounts and trusts

Some have described real wealth as the ability to live off the income from your assets. Most people don’t achieve that level of wealth, especially earlier in their working years, but for some people, their investment income has grown beyond being able to plop a number on the front of their Form 1040 or 1040A and say they’re done. If you fall into the category of having more than $1,500 of interest or dividend income, Schedule B of the 1040 (which is located on the back side of Schedule A if you’re filing on paper and have received a Form 1040 booklet from the IRS) is for you. And if you have a foreign bank account or are involved in a foreign trust, Schedule B has to be filed. Sorry!

Although you may not have sufficient interest and dividend income to file Schedule B, filling it out is still a good idea. It’s a good worksheet and a terrific double-check to make sure that ...