Form 1040
's Schedule B deals with non-earned income, such as dividends.
In the "Income" section of the standard tax return form, you must report dividends or interest that you earn throughout the year. The IRS also requires taxpayers who receive dividends or interest during a given tax year to fill out Form 1040 Schedule B along with their standard 1040 tax returns. Schedule B consists of only one page, with separate sections for listing each source of taxable interest and dividends from stocks or bonds.
Instructions
1. Download Form 1040 Schedule B from the IRS page (see Resources.) To download the form from the page, click the disk icon that appears in the toolbar just beneath the address bar. When the "Save a Copy" window opens, select the location on your hard drive where you want the file to save and click the "Save" button.
2. Go to the folder where you saved Form 1040 Schedule B on your computer. Double-click the file to open it.
3. Complete Form 1040 Schedule B directly in the PDF program. The IRS PDF form is a writable form, which means that you can click into any of the fields and enter your information directly into the form.
4. Fill out the "Interest" section of the form with any taxable income. According to the IRS instructions for Schedule B, taxable interest for individual taxpayers usually comes from selling a property and allowing the buyer to finance the property through you instead of through a traditional financial institution, or from bank accounts. If you charge the buyer interest on this mortgage, you must report it.
5. Enter any dividends received from traditional stocks, bonds, trusts and foreign accounts in the "Ordinary Dividend's" section of Form 1040 Schedule B. Generally, all dividends received throughout a year are taxable and must be reported on Form 1040 Schedule B.
6. Fill out the "Foreign Accounts and Trusts" section of the form by simply checking "Yes" or "No" to the two questions asked regarding whether you obtained any of your interest from foreign accounts. If the answer is "Yes," you must also fill in the name of the country in which the account is held.
7. Print out the form once you have filled in all of the requested information. Attach the form to your 1040 and submit the form to the IRS with your tax return.
