Schedule B (Form 1 Interest and Ordinary Dividends

SCHEDULE B
Department of the Treasury
Internal Revenue Service (99)

OMB No. 1545-0074

Interest and Ordinary Dividends

(Form 1040A or 1040)
© Attach

to Form 1040A or 1040.

© See

2009

instructions on back.

Attachment
Sequence No. 08
Your social security number

Name(s) shown on return

Part I
Interest

1

(See instructions
on back and the
instructions for
Form 1040A, or
Form 1040,
line 8a.)

Note. If you
received a Form
1099-INT, Form
1099-OID, or
substitute
statement from
a brokerage firm,
list the firm’s
name as the
payer and enter
the total interest
shown on that
form.

Part II
Ordinary
Dividends

1

2
3

Add the amounts on line 1 . . . . . . . . . .
Excludable interest on series EE and I U.S. savings
Attach Form 8815 . . . . . . . . . . . . .
4
Subtract line 3 from line 2. Enter the result here and
1040, line 8a . . . . . . . . . . . . . .
Note. If line 4 is over $1,500, you must complete Part III.
5
List name of payer ©

. . . . . . . .
bonds issued after 1989.
. . . . . . . .
on Form 1040A, or Form
. . . . . . . . ©

(See instructions
on back and the
instructions for
Form 1040A, or
Form 1040,
line 9a.)
Note. If you
received a Form
1099-DIV or
substitute
statement from
a brokerage firm,
list the firm’s
name as the
payer and enter
the ordinary
dividends shown
on that form.

Part III
Foreign
Accounts
and Trusts
(See
instructions on
back.)

Amount

List name of payer. If any interest is from a seller-financed mortgage and the
buyer used the property as a personal residence, see instructions on back and list
this interest first. Also, show that buyer’s social security number and address ©

2
3
4

Amount

5

6

Add the amounts on line 5. Enter the total here and on Form 1040A, or Form
6
1040, line 9a . . . . . . . . . . . . . . . . . . . . . . ©
Note. If line 6 is over $1,500, you must complete Part III.
You must complete this part if you (a) had over $1,500 of taxable interest or ordinary dividends; (b) had a
foreign account; or (c) received a distribution from, or were a grantor of, or a transferor to, a foreign trust.

Yes No

7a

At any time during 2009, did you have an interest in or a signature or other authority over a
financial account in a foreign country, such as a bank account, securities account, or other
financial account? See instructions on back for exceptions and filing requirements for Form TD F
90-22.1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
b If “Yes,” enter the name of the foreign country ©
8
During 2009, did you receive a distribution from, or were you the grantor of, or transferor to, a
foreign trust? If “Yes,” you may have to file Form 3520. See instructions on back . . . . . .

For Paperwork Reduction Act Notice, see Form 1040A or 1040 instructions.

Cat. No. 17146N

Schedule B (Form 1040A or 1040) 2009

Page 2

Schedule B (Form 1040A or 1040) 2009

General Instructions
Section references are to the Internal Revenue Code
unless otherwise noted.

What's New
Form 1040A. Form 1040A filers will now file
Schedule B to report interest and ordinary dividends.
Schedule 1 (Form 1040A), Interest and Ordinary
Dividends for Form 1040A Filers, is now obsolete. For
any prior year returns (before 2009) that need to be
filed, still use Schedule 1.
Schedule A. Schedule A, Itemized Deductions, is no
longer associated with Schedule B. Schedules A and
B are now separate schedules.

Purpose of Form
Use Schedule B if any of the following applies.
• You had over $1,500 of taxable interest or ordinary
dividends.
• You received interest from a seller-financed
mortgage and the buyer used the property as a
personal residence.
• You have accrued interest from a bond.
• You are reporting original issue discount (OID) in an
amount less than the amount shown on Form
1099-OID.
• You are reducing your interest income on a bond
by the amount of amortizable bond premium.
• You are claiming the exclusion of interest from
series EE or I U.S. savings bonds issued after 1989.
• You received interest or ordinary dividends as a
nominee.
• You had a foreign account or you received a
distribution from, or were a grantor of, or transferor
to, a foreign trust. Part III of the schedule has
questions about foreign accounts and trusts.

Specific Instructions
You can list more than one payer on
each entry space for lines 1 and 5, but
be sure to clearly show the amount
paid next to the payer's name. Add the
separate amounts paid by the payers listed on an
entry space and enter the total in the “Amount”
column. If you still need more space, attach separate
statements that are the same size as the printed
schedule. Use the same format as lines 1 and 5, but
show your totals on Schedule B. Be sure to put your
name and social security number (SSN) on the
statements and attach them at the end of your return.

Part I. Interest
Line 1. Report on line 1 all of your taxable interest.
Taxable interest should be shown on your Forms
1099-INT, Forms 1099-OID, or substitute statements.
Include interest from series EE, H, HH, and I U.S.
savings bonds. List each payer’s name and show the
amount. Do not report on this line any tax-exempt
interest from box 8 or box 9 of Form 1099-INT.
Instead, report the amount from box 8 on line 8b of
Form 1040A or 1040. If an amount is shown in box 9
of Form 1099-INT, you generally must report it on line
13 of Form 6251. See the Instructions for Form 6251
for more details.
Seller-financed mortgages. If you sold your
home or other property and the buyer used the
property as a personal residence, list first any interest
the buyer paid you on a mortgage or other form of
seller financing. Be sure to show the buyer’s name,
address, and SSN. You must also let the buyer know
your SSN. If you do not show the buyer’s name,
address, and SSN, or let the buyer know your SSN,
you may have to pay a $50 penalty.

Nominees. If you received a Form 1099-INT that
includes interest you received as a nominee (that is,
in your name, but the interest actually belongs to
someone else), report the total on line 1. Do this even
if you later distributed some or all of this income to
others. Under your last entry on line 1, put a subtotal
of all interest listed on line 1. Below this subtotal,
enter "Nominee Distribution" and show the total
interest you received as a nominee. Subtract this
amount from the subtotal and enter the result on
line 2.
If you received interest as a nominee,
you must give the actual owner a Form
1099-INT unless the owner is your
spouse. You must also file a Form 1096
and a Form 1099-INT with the IRS.
For more details, see the General Instructions for
Forms 1099, 1098, 3921, 3922, 5498, and W-2G and
the Instructions for Forms 1099-INT and
1099-OID.
Accrued interest. When you buy bonds between
interest payment dates and pay accrued interest to
the seller, this interest is taxable to the seller. If you
received a Form 1099 for interest as a purchaser of a
bond with accrued interest, follow the rules earlier
under Nominees to see how to report the accrued
interest. But identify the amount to be subtracted as
“Accrued Interest.”
Original issue discount (OID). If you are reporting
OID in an amount less than the amount shown on
Form 1099-OID, follow the rules earlier under
Nominees to see how to report the OID. But identify
the amount to be subtracted as “OID Adjustment.”
Amortizable bond premium. If you are reducing
your interest income on a bond by the amount of
amortizable bond premium, follow the rules earlier
under Nominees to see how to report the interest.
But identify the amount to be subtracted as “ABP
Adjustment.”
Line 3. If, during 2009, you cashed series EE or I U.S.
savings bonds issued after 1989 and you paid
qualified higher education expenses for yourself, your
spouse, or your dependents, you may be able to
exclude part or all of the interest on those bonds. See
Form 8815 for details.

Part II. Ordinary Dividends
You may have to file Form 5471 if, in
2009, you were an officer or director of
a foreign corporation. You may also
have to file Form 5471 if, in 2009, you
owned 10% or more of the total (a) value of a foreign
corporation’s stock, or (b) combined voting power of
all classes of a foreign corporation’s stock with voting
rights. For details, see Form 5471 and its instructions.
Line 5. Report on line 5 all of your ordinary dividends.
This amount should be shown in box 1a of your
Forms 1099-DIV or substitute statements. List each
payer’s name and show the amount.
Nominees. If you received a Form 1099-DIV that
includes ordinary dividends you received as a
nominee (that is, in your name, but the ordinary
dividends actually belong to someone else), report
the total on line 5. Do this even if you later distributed
some or all of this income to others. Under your last
entry on line 5, put a subtotal of all ordinary dividends
listed on line 5. Below this subtotal, enter “Nominee
Distribution” and show the total ordinary dividends
you received as a nominee. Subtract this amount
from the subtotal and enter the result on line 6.
If you received dividends as a nominee,
you must give the actual owner a Form
1099-DIV unless the owner is your
spouse. You must also
file a Form 1096 and a Form 1099-DIV with the IRS.
For more details, see the General Instructions for
Forms 1099, 1098, 3921, 3922, 5498, and W-2G and
the Instructions for Form 1099-DIV.

Part III. Foreign Accounts and
Trusts
Line 7a. Check the “Yes” box on line 7a if either (1)
or (2) below applies.
1. You own more than 50% of the stock in any
corporation that owns one or more foreign bank
accounts.
2. At any time during 2009 you had an interest in
or signature or other authority over a financial
account in a foreign country (such as a bank account,
securities account, or other financial account).
For line 7a, item (2) does not apply to
foreign securities held in a U.S.
securities account.
Exceptions. Check the “No” box if any of the
following applies to you.
• The combined value of the accounts was $10,000
or less during the whole year.
• The accounts were with a U.S. military banking
facility operated by a U.S. financial institution.
• You were an officer or employee of a commercial
bank that is supervised by the Comptroller of the
Currency, the Board of Governors of the Federal
Reserve System, or the Federal Deposit Insurance
Corporation; the account was in your employer’s
name; and you did not have a personal financial
interest in the account.
• You were an officer or employee of a domestic
corporation with securities listed on national
securities exchanges or with assets of more than $10
million and 500 or more shareholders of record; the
account was in your employer’s name; you did not
have a personal financial interest in the account; and
the corporation’s chief financial officer has given you
written notice that the corporation has filed a current
report that includes the account.
See Form TD F 90-22.1 to find out if you are
considered to have an interest in or signature or other
authority over a financial account in a foreign country
(such as a bank account, securities account, or other
financial account). You can get Form TD F 90-22.1 by
visiting the IRS website at
www.irs.gov/pub/irs-pdf/f90221.pdf.
If you checked the “Yes” box on line 7a, file Form
TD F 90-22.1 by June 30, 2010, with the Department
of the Treasury at the address shown on that form.
Do not attach it to Form 1040.
If you are required to file Form TD F
90-22.1 but do not do so, you may
have to pay a penalty of up to $10,000
(more in some cases).
Line 7b. If you checked the “Yes” box on line 7a,
enter the name of the foreign country or countries in
the space provided on line 7b. Attach a separate
statement if you need more space.
Line 8. If you received a distribution from a foreign
trust, you must provide additional information. For
this purpose, a loan of cash or marketable securities
generally is considered to be a distribution. See Form
3520 for details.
If you were the grantor of, or transferor to, a
foreign trust that existed during 2009, you may have
to file Form 3520.
Do not attach Form 3520 to Form 1040. Instead,
file it at the address shown in its instructions.
If you were treated as the owner of a foreign trust
under the grantor trust rules, you are also responsible
for ensuring that the foreign trust files Form 3520-A.
Form 3520-A is due on March 15, 2010, for a
calendar year trust. See the instructions for Form
3520-A for more details.