Instructions for Schedule B (Form 1040) - Interest and Ordinary Dividends

Sep 19, 2026

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Instructions for Schedule B (Form 1040) explain when taxpayers must complete the schedule based on taxable interest or ordinary dividends and other qualifying situations. Guidance covers reporting requirements for multiple payers, how to total amounts, and how to document statements with name and SSN. Detailed directions for Part I Interest cover taxable interest, exclusions for tax-exempt interest, nominee reporting, accrued interest, original issue discount (OID) adjustments, amortizable bond premium adjustments, and related seller-financed mortgage rules.

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General Instructions

When to Use Schedule B (Form 1040)

Reporting Amounts and Payers

Specific Instructions

Part I. Interest

Line 1: Taxable Interest

Seller-Financed Mortgages

Nominees

Accrued Interest

Original Issue Discount (OID)

Amortizable Bond Premium

Tax-Exempt Interest

2025 Instructions for Schedule B (Form 1040) Interest and Ordinary Dividends Section references are to the Internal Revenue Code unless otherwise noted. Future Developments For the latest information about developments related to Schedule B (Form 1040) and its instructions, such as legislation enacted after they were published, go to [IRS.gov/ScheduleB](IRS.gov/ScheduleB). General Instructions Use Schedule B (Form 1040) if any of the following applies. • You had over $1,500 of taxable interest or ordinary dividends. • You received interest from a seller-financed mortgage and the buyer used the property as a personal residence. • You have accrued interest from a bond. • You are reporting original issue discount (OID) of less than the amount shown on Form 1099-OID. • You are reporting interest income of less than the amount shown on a Form 1099 due to amortizable bond premium. • You are claiming the exclusion of interest from series EE or I U.S. savings bonds issued after 1989. • You received interest or ordinary dividends as a nominee. • You had a financial interest in, or signature authority over, a financial account in a foreign country or you received a distribution from, or were a grantor of, or transferor to, a foreign trust. You can list more than one payer on each entry space for lines 1 and 5, but be sure to clearly show the amount paid next to each payer’s name. Add the separate amounts paid by the payers listed on an entry space and enter the total in the “Amount”column. If you still need more space, attach separate statements using the same format as lines 1 and 5, but show your totals on Schedule B. Put your name and social security number (SSN) on the statements and attach them at the end of your return. TIP Specific Instructions Interest and Ordinary Dividends Part I. Interest Line 1. Report on line 1 all of your taxable interest. Taxable interest generally should be shown on your Forms 1099-INT, Forms 1099-OID, or substitute statements. Include interest from series EE, H, HH, and I U.S. savings bonds. Also include any accrued market discount that isincludible in income and any gain on a contingent payment debt instrument that is includible in income as interest income. List each payer’s name and the amount. Don't report on line 1 any tax-exempt interest. See Tax-exempt interest, later, for more information. For more information on stated interest, original issue discount (OID), market discount, contingent payment debt instruments, and premium, see Pub. 550 and Pub. 1212. ! CAUTION The market discount on a tax-exempt bond is taxable interest income and not tax-exempt interest. Seller-financed mortgages. If you sold your home or other property and the buyer used the property as a personal residence, list first any interest the buyer paid you on a mortgage or other form of seller financing. Be sure to show the buyer’s name, address, and SSN. You must also let the buyer know your SSN. If you don't show the buyer’s name, address, and SSN, or let the buyer know your SSN, you may have to pay a $50 penalty. If you or the buyer do not have an SSN, use the appropriate TIN for the filer or recipient of Form 1098. For more information, see General Instructions for Certain Information Returns (2025) . Nominees. If you received a Form 1099-INT that includes interest you received as a nominee (that is, in your name, but the interest actually belongs to someone else), report the total on line 1. Do this even if you later distributed some or all of this income to others. Under your last entry on line 1, put a subtotal of all interest listed online 1. Below this subtotal, enter “Nominee Distribution”and show the total interest you received as a nominee. Subtract this amount from the subtotal and enter the result on line 2. Instructions for Schedule B (Form 1040) (2025) Catalog Number 70541Y Apr 23, 2025 Department of the Treasury Internal Revenue Service [www.irs.gov]

FAQs

When must Schedule B (Form 1040) be used?

Use Schedule B if you had more than $1,500 of taxable interest or ordinary dividends, or other listed situations such as certain bond accruals, nominee interest, or foreign financial account-related reporting.

How should multiple payers be reported on Schedule B?

You may list more than one payer on each entry space for lines 1 and 5. Add the separate amounts next to each payer and enter the total in the “Amount” column; attach statements using the same format if additional space is needed.

How is nominee interest reported?

Report the total nominee interest on line 1 even if you later distributed some or all of it to others. Provide the actual owner with the appropriate Form 1099-INT (unless the owner is your spouse) and file Forms 1096 and 1099-INT with the IRS.

Sep 19, 2026

Upload by Mason