What is Schedule B income (Interest and dividends)? Using the given information

ID: 2405230 • Letter: W

Question

What is Schedule B income (Interest and dividends)? Using the given information

Paul owns several other investments and received the following information reports for the current tax year:

Form 1009-Div:

General Dynamics – Gross qualified dividends - $600

Form 1099-Int

New Jersey Economic Development bonds – Gross interest - $300

IBM bonds – Gross interest - $600

State of Nebraska bonds – Gross Interest - $200

Form 1098-Mortgage Interest Statement

Sunbelt Credit Union – Mortgage interest - $7,100

Northeast Bank – Home-equity loan interest - $435

Form K-1 Grubstake Mining and Development:

Distribution to shareholder - $1,000

Ordinary income (1% of $200,000) - $2,000

As per IRS, any individual earning more than $1500 in taxable interest or ordinary dividend, has to file Schedule B.

Thus Schedule B income is taxable interest income or ordinary dividend income.

As the interest and ordinary dividend in the above given case is $1500, Mr.Paul has to file Schedule B

Form 1009-Div:

General Dynamics – Gross qualified dividends - $600

Form 1099-Int

New Jersey Economic Development bonds – Gross interest - $300

IBM bonds – Gross interest - $600

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