Use Schedule B (Form 1040) if any of the following applies.
You had over $1,500 of taxable interest.
Any of the Special Rules listed in the instructions for line 1 apply to you.
You are claiming the exclusion of interest from series EE or I U.S. savings bonds issued
You had over $1,500 of ordinary dividends.
You received ordinary dividends as a nominee.
You had a foreign account or you received a distribution from, or were a grantor of, or
transferor to, a foreign trust. Part III of the schedule has questions about foreign accounts and
You can list more than one
total on line 1. Do this even if you later
you paid qualified higher education ex-
payer on each entry space for
distributed some or all of this income to
penses for yourself, your spouse, or your
lines 1 and 5, but be sure to
others. Under your last entry on line 1, put a
dependents, you may be able to exclude
clearly show the amount paid
subtotal of all interest listed on line 1. Be-
part or all of the interest on those bonds.
next to the payer’s name. Add the separate
low this subtotal, enter “Nominee Distribu-
See Form 8815 for details.
amounts paid by the payers listed on an
tion” and show the total interest you
entry space and enter the total in the
received as a nominee. Subtract this
“Amount” column. If you still need more
amount from the subtotal and enter the re-
Part II. Ordinary
space, attach separate statements that are
sult on line 2.
the same size as the printed schedule. Use
the same format as lines 1 and 5, but show
If you received interest as a
your totals on Schedule B. Be sure to put
nominee, you must give the ac-
You may have to file Form
your name and social security number
tual owner a Form 1099-INT
5471 if, in 2008, you were an
(SSN) on the statements and attach them at
unless the owner is your
officer or director of a foreign
the end of your return.
spouse. You must also file a Form 1096 and
corporation. You may also have
a Form 1099-INT with the IRS. For more
to file Form 5471 if, in 2008, you owned
details, see the General Instructions for
10% or more of the total (a) value of a
Part I. Interest
Forms 1099, 1098, 5498, and W-2G and
foreign corporation’s stock, or (b) com-
the Instructions for Forms 1099-INT and
bined voting power of all classes of a for-
eign corporation’s stock with voting rights.
For details, see Form 5471 and its instruc-
When you buy bonds between interest pay-
ment dates and pay accrued interest to the
Report on line 1 all of your taxable interest.
seller, this interest is taxable to the seller. If
Taxable interest should be shown on your
you received a Form 1099 for interest as a
Forms 1099-INT, Forms 1099-OID, or
purchaser of a bond with accrued interest,
substitute statements. Include interest from
follow the rules earlier under Nominees to
series EE, H, HH, and I U.S. savings bonds.
Report on line 5 all of your ordinary divi-
see how to report the accrued interest on
List each payer’s name and show the
dends. This amount should be shown in box
Schedule B. But identify the amount to be
amount. Do not report on this line any
1a of your Forms 1099-DIV or substitute
subtracted as “Accrued Interest.”
tax-exempt interest from box 8 or box 9 of
statements. List each payer’s name and
Form 1099-INT. Instead, report the amount
show the amount.
from box 8 on line 8b of Form 1040. If an
Original Issue Discount (OID)
amount is shown in box 9 of Form
If you are reporting OID in an amount less
1099-INT, you generally must report it on
If you received a Form 1099-DIV that in-
than the amount shown on Form
line 12 of Form 6251. See the instructions
cludes ordinary dividends you received as a
1099-OID, follow the rules earlier under
for Form 6251 for more details.
nominee (that is, in your name, but the ordi-
Nominees to see how to report the OID on
nary dividends actually belong to someone
Schedule B. But identify the amount to be
else), report the total on line 5. Do this even
subtracted as “OID Adjustment.”
if you later distributed some or all of this
income to others. Under your last entry on
Amortizable Bond Premium
line 5, put a subtotal of all ordinary divi-
If you sold your home or other property and
If you are reducing your interest income on
dends listed on line 5. Below this subtotal,
the buyer used the property as a personal
a bond by the amount of amortizable bond
enter “Nominee Distribution” and show the
residence, list first any interest the buyer
premium, follow the rules earlier under
total ordinary dividends you received as a
paid you on a mortgage or other form of
Nominees to see how to report the interest
nominee. Subtract this amount from the
seller financing. Be sure to show the
on Schedule B. But identify the amount to
subtotal and enter the result on line 6.
buyer’s name, address, and SSN. You must
be subtracted as “ABP Adjustment.”
also let the buyer know your SSN. If you do
not show the buyer’s name, address, and
SSN, or let the buyer know your SSN, you
may have to pay a $50 penalty.
Excludable Interest on
Series EE and I U.S. Savings
If you received a Form 1099-INT that in-
Bonds Issued After 1989
cludes interest you received as a nominee
(that is, in your name, but the interest actu-
If, during 2008, you cashed series EE or I
ally belongs to someone else), report the
U.S. savings bonds issued after 1989 and