Schedule B

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Updated Feb 24, 2026

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Schedule B is a federal tax document between a taxpayer and the IRS that reports interest and dividend income. It is used by taxpayers to disclose income from bank accounts or investments and remain compliant with tax regulations.

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Reviewed by Jonathan McGill, JD

Template Description

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Taxpayers who earn income from interest, dividends, or other financial investments are required to report these sources as part of their annual tax obligations. Specific provisions assist in accurately documenting taxable amounts and ensuring compliance. To claim these amounts and remain within federal tax regulations, eligible individuals must complete a designated form summarizing such income sources.

What Is 1040 Schedule B?

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Schedule B form 1040 reports taxable income earned from interest or ordinary dividends. This form also includes additional questions about foreign accounts or trusts that taxpayers must disclose. Schedule B 1040 ensures that investment earnings are properly reported, providing transparency while calculating overall tax obligations.

When To Use Schedule B

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Taxpayers are required to use the IRS form 1040 Schedule B if their interest income, ordinary dividend income, or combined total exceeds $1,500 during the tax year. It is also necessary for individuals who have financial accounts in foreign countries or receive distributions from certain foreign trusts. Submitting the IRS 1040 Schedule B provides a clear account of all applicable income sources related to these financial categories.

Parties Involved

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Taxpayer. Provides a full account of their income from interest and dividends, along with any details on foreign accounts or trusts.
Financial institutions. Supply records such as form 1099-INT (Interest Income) and form 1099-DIV (Dividends and Distributions) to the taxpayer detailing earned amounts.
Tax professionals. Help organize, verify, and submit the information required on 1040 Schedule B as part of the overall tax filing process.

Key Terms

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Interest income. Earnings from accounts such as savings, bonds, or certificates of deposit (CDs).
Ordinary dividends: Earnings distributed by corporations or mutual funds that are taxable as ordinary income.
Form 1099-INT. Issued by financial institutions to report interest income earned by the taxpayer.
Form 1099-DIV. Reports dividends and certain other financial distributions to investors.
Foreign account. Any bank or financial account held in a foreign country that may require disclosure.

How To Complete 2025 Form 1040 Schedule B

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Organize income documents. Gather all forms 1099-INT and 1099-DIV from financial institutions.
Download Schedule B. Obtain the latest version of IRS Schedule B (form 1040) from the IRS website or Loio platform.
Report interest and dividends. Fill out Part I (Interest Income) and Part II (Ordinary Dividends) by listing payers and amounts as shown on your forms.
Answer foreign account questions. Complete Part III to disclose if you have foreign financial accounts or involvement with foreign trusts.
Submit with your return. Add Schedule B to your form 1040 or form 1040-SR filing by the standard tax deadline.