When to Attach Schedule B?

You may need to attach a Schedule B form to your 1040 if you have any interest-bearing accounts, according to DoughRoller.net. The IRS requires Schedule B forms if your interest income exceeds $1,500.

Criteria

• You need to fill out Schedule B if you have interest payments from a seller-financed mortgage and the buyer lived in the home or if you accrued interest from a bond and you are reporting an original issue discount, according to Dough Roller. Reducing bond interest income by the amortizable bond premium amount will call for a Schedule B, as well. Claiming exclusion of interest from some U.S. savings bonds, receiving dividends or interest as a nominee, or holding a foreign account may make a Schedule B form necessary at tax time.

The Form

• The Schedule B Form appears with the 1040 and 1040A paperwork, so you can fill it out as you do your yearly taxes, according to Dough Roller. Gather all interest reports before starting a Schedule B.

Consideration

• Ask a tax professional any complicated questions you have about Schedule B. Not asking could lead to errors, which may cause hassles with the Internal Revenue Service (IRS).