U.S. Individual Income Tax Return Forms

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2024 Instructions for
Schedule B (Form 1040)

Department of the Treasury
Internal Revenue Service

TREASURY/IRS
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September 4, 2024

Interest and Ordinary Dividends

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

Future Developments

For the latest information about developments related to
Schedule B (Form 1040) and its instructions, such as
legislation enacted after they were published, go to
IRS.gov/ScheduleB.

General Instructions

Use Schedule B (Form 1040) 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) of less
than the amount shown on Form 1099-OID.
• You are reporting interest income of less than the
amount shown on a Form 1099 due to 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 financial interest in, or signature authority
over, a financial account in a foreign country or you
received a distribution from, or were a grantor of, or
transferor to, a foreign trust.
You can list more than one payer on each entry

TIP space for lines 1 and 5, but be sure to clearly

show the amount paid next to each 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
using the same format as lines 1 and 5, but show your
totals on Schedule B. Put your name and social security
number (SSN) on the statements and attach them at the
end of your return.

Specific Instructions
Interest and Ordinary Dividends
Part I. Interest
Line 1. Report on line 1 all of your taxable interest.
Taxable interest generally should be shown on your Forms
Sep 3, 2024

1099-INT, Forms 1099-OID, or substitute statements.
Include interest from series EE, H, HH, and I U.S. savings
bonds. Also include any accrued market discount that is
includible in income and any gain on a contingent
payment debt instrument that is includible in income as
interest income. List each payer’s name and the amount.
Don't report on line 1 any tax-exempt interest. See
Tax-exempt interest, later, for more information.
For more information on stated interest, original issue
discount (OID), market discount, contingent payment debt
instruments, and premium, see Pub. 550 and Pub. 1212.

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The market discount on a tax-exempt bond is
taxable interest and not tax-exempt interest.

CAUTION

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 don't show
the buyer’s name, address, and SSN, or let the buyer
know your SSN, you may have to pay a $50 penalty. If you
or the buyer do not have an SSN, use the appropriate TIN
for the filer or recipient of Form 1098. For more
information, see General Instructions for Certain
Information Returns (2024).
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

TIP give the actual owner a Form 1099-INT (unless

the owner is your spouse) and file Forms 1096
and 1099-INT with the IRS. For more details, see the
General Instructions for Certain Information Returns 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 in box 1 or

Cat. No. 70541Y

box 8 of 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.” However, if
the payer reported to you a net amount of OID on the bond
reflecting the offset of the gross amount of OID by any
acquisition premium, no reduction of the amount of OID
income reported to you by the payer is permitted on
Schedule B for the bond.
Amortizable bond premium. If you elect to reduce
your interest income on a taxable bond by the amount of
taxable 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.”
However, if the payer reported to you a net amount of
interest income on the bond reflecting the offset of the
gross amount of interest income by the amortizable bond
premium, no reduction of the amount of interest income
reported to you by the payer is permitted on Schedule B
for the bond.
Tax-exempt interest. If you received any tax-exempt
interest (including any tax-exempt OID), such as from
municipal bonds, each payer should send you a Form
1099-INT or a Form 1099-OID. In general, your
tax-exempt stated interest should be shown in box 8 of
Form 1099-INT or, for a tax-exempt OID bond, in box 2 of
Form 1099-OID, and your tax-exempt OID should be
shown in box 11 of Form 1099-OID. Enter the total on
line 2a of your Form 1040 or 1040-SR. However, if you
acquired a tax-exempt bond at a premium, only report the
net amount of tax-exempt interest on line 2a of your Form
1040 or 1040-SR (that is, the excess of the tax-exempt
interest received during the year over the amortized bond
premium for the year). Also, if you acquired a tax-exempt
OID bond at an acquisition premium, only report the net
amount of tax-exempt OID on line 2a of your Form 1040 or
1040-SR (that is, the excess of the tax-exempt OID for the
year over the amortized acquisition premium for the year).
See Pub. 550 for more information about OID, bond
premium, and acquisition premium.
Also include on line 2a of your Form 1040 or 1040-SR
any exempt-interest dividends from a mutual fund or other
regulated investment company. This amount should be
shown in box 12 of Form 1099-DIV.
If an amount is shown in box 9 of Form 1099-INT, you
must generally report it on line 2g of Form 6251. See the
Instructions for Form 6251 at IRS.gov/Form6251 for
details.

Part II. Ordinary Dividends
You may have to file Form 5471 if, in 2024, you

TIP were an officer or director of a foreign corporation.

You may also have to file Form 5471 if, in 2024,
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 at IRS.gov/
Form5471.

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Line 3. If, during 2024, 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 at IRS.gov/
Form8815 for details.

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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.
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

TIP give the actual owner a Form 1099-DIV (unless

the owner is your spouse) and file Forms 1096
and 1099-DIV with the IRS. For more details, see the
General Instructions for Certain Information Returns and
the Instructions for Form 1099-DIV.

Part III. Foreign Accounts and Trusts

Regardless of whether you are required to file

TIP FinCEN Form 114 (FBAR), you may be required to

file Form 8938, Statement of Specified Foreign
Financial Assets, with your income tax return. Failure to
file Form 8938 may result in penalties and extension of the
statute of limitations. See IRS.gov/Form8938 for more
information.
Line 7a—Question 1. Check the “Yes” box if at any time
during 2024 you had a financial interest in or signature
authority over a financial account located in a foreign
country. See the definitions that follow. Check the “Yes”
box even if you aren't required to file FinCEN Form 114.
Financial account. A financial account includes, but
isn't limited to, a securities, brokerage, savings, demand,
checking, deposit, time deposit, or other account
maintained with a financial institution (or other person
performing the services of a financial institution). A
financial account also includes a commodity futures or
options account, an insurance policy with a cash value
(such as a whole life insurance policy), an annuity policy
with a cash value, and shares in a mutual fund or similar
pooled fund (that is, a fund that is available to the general
public with a regular net asset value determination and
regular redemptions).
Financial account located in a foreign country. A
financial account is located in a foreign country if the
account is physically located outside of the United States.
For example, an account maintained with a branch of a
U.S. bank that is physically located outside of the United

States is a foreign financial account. An account
maintained with a branch of a foreign bank that is
physically located in the United States isn't a foreign
financial account.
Signature authority. “Signature authority” is the
authority of an individual (alone or in conjunction with
another individual) to control the disposition of assets held
in a foreign financial account by direct communication
(whether in writing or otherwise) to the bank or other
financial institution that maintains the financial account.
See the FinCEN Form 114 instructions for exceptions.
Don't consider the exceptions relating to signature
authority in answering Question 1 on line 7a.
Other definitions. For definitions of “financial interest,”
“United States,” and other relevant terms, see the
instructions for FinCEN Form 114.

If you are required to file FinCEN Form 114 but
don't properly do so, you may have to pay a civil
CAUTION penalty up to $10,000. A person who willfully fails
to report an account or provide account identifying
information may be subject to a civil penalty equal to the
greater of $100,000 or 50% of the balance in the account
at the time of the violation. Willful violations may also be
subject to criminal penalties.

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Line 7a—Question 2. See FinCEN Form 114 and its
instructions at FINCEN.gov to determine whether you
must file the form. Check the “Yes” box if you are required
to file the form. Check the “No” box if you aren't required to
file the form.
If you checked the “Yes” box to Question 2 on line 7a,
you must electronically file FinCEN Form 114 with
Treasury's Financial Crimes Enforcement Network. A U.S.
person that has a financial interest in or signature authority
over foreign financial accounts must file the form if the
aggregate value of foreign financial accounts exceeds
$10,000 at any time during 2024. Do not attach FinCEN
Form 114 to your tax return.
For the due date and more information about FinCEN
Form 114, see FINCEN.gov.

Line 7b. If you are required to file FinCEN Form 114, list
the name(s) 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 is generally
considered to be a distribution. See the Instructions for
Form 3520 at IRS.gov/Form3520 for details.
If you were the grantor of, or transferor to, a foreign trust
that existed during 2024, you may have to file Form 3520.
Don't attach Form 3520 to Form 1040 or Form
1040-SR. 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 17, 2025, for a calendar year
trust. See the Instructions for Form 3520-A at IRS.gov/
Form3520A for details.

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