1040

Interest and Ordinary Dividends

Agency
IRS
Revision
2025
Fillable fields
72
Pages
1
Official source
IRS form page
Checked
October 20, 2026
Fill 1040 online
Page 1 of form 1040

Schedule B (Form 1040): Interest and Ordinary Dividends

Schedule B lists the payers behind your taxable interest and ordinary dividends, then asks a short set of questions about foreign accounts and foreign trusts. Part I covers interest, and its total on line 4 goes to Form 1040 or 1040-SR, line 2b. Part II covers ordinary dividends, and its total on line 6 goes to line 3b.

The IRS page lists when the schedule is used, starting with having over $1,500 of taxable interest or ordinary dividends. It also covers interest from a seller-financed mortgage, income received as a nominee, the savings bond interest exclusion and any foreign account or foreign trust.

Part III asks about financial accounts in a foreign country and about foreign trusts. The form notes that FinCEN Form 114 and Form 8938 may also be required.

Top of page 1 of Schedule B (Form 1040): Interest and Ordinary Dividends, as printed by IRS

What's on Schedule B

Part I, line 1: interest by payer

Each payer's name and amount. The form says that for a Form 1099-INT, Form 1099-OID or substitute statement from a brokerage firm, the firm's name is listed with the total interest it shows.

Lines 2 to 4: interest total

Line 2 adds line 1, line 3 subtracts excludable savings bond interest from Form 8815, and line 4 goes on Form 1040 or 1040-SR, line 2b.

Part II, line 5: dividends by payer

Each payer's name and the ordinary dividends it paid. The instructions say this amount should be shown in box 1a of Forms 1099-DIV.

Line 6: dividends total

Line 6 adds the amounts on line 5 and goes on Form 1040 or 1040-SR, line 3b.

Part III, line 7: foreign accounts

Yes or No questions on a financial interest in or signature authority over a foreign account and on whether FinCEN Form 114 (FBAR) is required. Line 7b lists the countries where the accounts are.

Part III, line 8: foreign trusts

A Yes or No question on receiving a distribution from, or being the grantor of or transferor to, a foreign trust. The form says Form 3520 may be required.

How to fill out Schedule B

  1. 1

    Collect your Forms 1099

    Forms 1099-INT, 1099-OID and 1099-DIV, or substitute statements, show the interest and dividends each payer reported.

  2. 2

    List interest on line 1

    Enter each payer and amount, with any seller-financed mortgage interest first. The instructions allow more than one payer on an entry space if each amount is shown next to its name.

  3. 3

    Subtract nominee and bond adjustments

    Under the last entry, the instructions say to show a subtotal, then the amount labeled Nominee Distribution, Accrued Interest, OID Adjustment or ABP Adjustment, and subtract it.

  4. 4

    Leave out tax-exempt interest

    The instructions say not to report tax-exempt interest on line 1. It goes on Form 1040 or 1040-SR, line 2a.

  5. 5

    List dividends on lines 5 and 6

    Enter each payer's ordinary dividends from box 1a of Form 1099-DIV and carry the line 6 total to Form 1040 or 1040-SR, line 3b.

  6. 6

    Answer Part III

    Answer lines 7a and 8 when Part III applies. The instructions say to check Yes on the first line 7a question even if FinCEN Form 114 isn't required. You can fill this form free on this page.

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Deadlines, fees and where to send Schedule B

Deadline

Schedule B is attached to Form 1040 or 1040-SR and is due with it.

Where it goes

Attach it to your return when you mail it, or let tax software transmit it when you e-file. The instructions say extra statements carry your name and SSN and go at the end of the return.

Cost

The IRS form is free.

FinCEN Form 114

The instructions say FinCEN Form 114 is filed electronically with FinCEN, not attached to the tax return. For 2025 they say it is required when the combined value of foreign financial accounts exceeds $10,000 at any time during the year.

Form 3520

The instructions say Form 3520 isn't attached to Form 1040 or 1040-SR. It is filed at the address shown in its own instructions.

Related forms

Who files Schedule B?

  • People with over $1,500 of interest or dividends

    The IRS page says to use Schedule B if you had over $1,500 of taxable interest or ordinary dividends. The 2025 form says Part III is then completed as well.

  • Sellers who financed a buyer's home

    If you sold property and the buyer used it as a personal residence, interest the buyer paid you on the seller financing is listed first, with the buyer's name, address and SSN.

  • Nominees and bond holders with adjustments

    People who received interest or dividends as a nominee, have accrued interest from a bond, report less OID than Form 1099-OID shows, or reduce interest by amortizable bond premium.

  • People excluding savings bond interest

    People claiming the exclusion of interest from series EE or I U.S. savings bonds issued after 1989, figured on Form 8815 and entered on line 3.

  • People with foreign accounts or trusts

    Anyone who had a financial interest in, or signature authority over, an account in a foreign country, or who received a distribution from, or was a grantor of or transferor to, a foreign trust.

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Questions about Form 1040

Do I need Schedule B if my interest is $1,500 or less?

Only if another item on the IRS list applies, such as seller-financed mortgage interest, income received as a nominee, the savings bond interest exclusion, or a foreign account or foreign trust.

Where do the Schedule B totals go?

Line 4 interest goes on Form 1040 or 1040-SR, line 2b. Line 6 ordinary dividends go on line 3b.

Does tax-exempt interest go on Schedule B?

No. The instructions say not to report tax-exempt interest on line 1. It is entered on Form 1040 or 1040-SR, line 2a.

What counts as a foreign financial account?

The instructions say an account is foreign if it is physically located outside the United States. Examples include bank, securities and brokerage accounts, mutual fund shares, and insurance or annuity policies with a cash value.

Is FinCEN Form 114 the same as Schedule B?

No. Schedule B asks whether you have a foreign account and whether FBAR is required. FinCEN Form 114 is a separate report filed electronically with FinCEN, and Form 8938 may also be required with the return.

What if interest on my Form 1099-INT belongs to someone else?

The instructions call that nominee interest. The full amount goes on line 1 and the nominee part is subtracted as Nominee Distribution. They also say a Form 1099-INT goes to the actual owner, unless the owner is your spouse.