In the federal individual income tax return, you may be able to report interest and dividends directly on Form 1040 rather than listing them individually on Schedule B if the total of each is under $1,500.
Schedule B is required if any of the following are true:
- The taxpayer had over $1,500 of taxable interest or ordinary dividends.
- The taxpayer received interest from a seller-financed mortgage and the buyer used the property as a personal residence.
- The taxpayer has accrued interest from a bond.
- The taxpayer is reporting original issue discount (OID) of less than the amount shown on Form 1099-OID.
- The taxpayer is reporting interest income of less than the amount shown on a Form 1099 due to amortizable bond premium.
- The taxpayer is claiming the exclusion of interest from series EE or I U.S. savings bonds issued after 1989.
- The taxpayer received interest or ordinary dividends as a nominee.
- The taxpayer had a financial interest in, or signature authority over, a financial account in a foreign country or received a distribution from, or were a grantor of, or transferor to, a foreign trust.
To enter interest and dividends in the individual income tax return in TaxSlayer Pro when Schedule B isn't required, from the main menu of the tax return select:
- Income
- Interest or Dividends (Less than $1500) - When prompted, enter the interest, ordinary dividends, qualified dividends, and capital gain distributions reported on Form(s) 1099-DIV and 1099-INT.
You can create supporting notes if you wish for each of the interest, dividends, and capital gain entry fields. To do this, select the F10 key on your keyboard at the entry field, and you'll be taken to a menu where you can add one or more supporting notes for the item. The amount you enter will carry back to the entry field.
Note: This is a guide on entering interest and dividends into the TaxSlayer Pro program. This is not intended as tax advice.
Additional Information: