Schedule B
Schedule B: Interest and Dividends, Payer by Payer
Schedule B of the 2025 Form 1040 lists taxable interest and ordinary dividends payer by payer when either tops $1,500. Part I totals carry to Line 2b, Part II totals to Line 3b, and Part III flags foreign accounts and trusts.
The $1,500 tripwire
Over $1,500 of taxable interest (§61(a)(4)) or over $1,500 of ordinary dividends (§61(a)(7)) and Schedule B is required — one line per payer, straight off your 1099-INT and 1099-DIV forms. At or under the tripwire, skip the schedule and report directly on Lines 2b and 3b.
Where the totals land
Part I interest carries to Form 1040, Line 2b; Part II dividends to Line 3b; both flow into total income on Line 9. Qualified dividends still need the worksheet rate — ordinary first, preferential rate second.
Part III: the foreign-account pointer
Part III asks whether you held foreign accounts or an interest in a foreign trust. A yes can trigger FBAR or Form 8938 filing, so answer it even in years the dollar amounts feel trivial — the penalties for silence are not.
Questions, answered
- When must I file Schedule B?
- When taxable interest tops $1,500, ordinary dividends top $1,500, or you must answer the Part III foreign-account questions. Below that, report directly on Lines 2b and 3b.
- Where do the Schedule B totals go?
- Part I interest carries to Form 1040, Line 2b; Part II dividends to Line 3b. Both flow into total income on Line 9.
- What is Part III for?
- Part III asks about foreign accounts and trusts. A yes answer may trigger FBAR or Form 8938 filing — answer carefully even when no tax is due.
Keep reading: Taxable Interest · Dividends · Total Income