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Department of the Treasury
Internal Revenue Service

2024 Instructions for

Schedule B (Form 1040)

Interest and Ordinary Dividends

Section references are to the Internal Revenue Code 1099-INT, Forms 1099-OID, or substitute statements.
unless otherwise noted. 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
Future Developments payment debt instrument that is includible in income as
interest income. List each payer’s name and the amount.
For the latest information about developments related to Don't report on line 1 any tax-exempt interest. See
Schedule B (Form 1040) and its instructions, such as Tax-exempt interest, later, for more information.
legislation enacted after they were published, go to For more information on stated interest, original issue
IRS.gov/ScheduleB. discount (OID), market discount, contingent payment debt
instruments, and premium, see Pub. 550 and Pub. 1212.
General Instructions The market discount on a tax-exempt bond is
Use Schedule B (Form 1040) if any of the following ! taxable interest income and not tax-exempt
applies. CAUTION interest.
• You had over $1,500 of taxable interest or ordinary Seller-financed mortgages. If you sold your home or
dividends. other property and the buyer used the property as a
• You received interest from a seller-financed mortgage personal residence, list first any interest the buyer paid
and the buyer used the property as a personal residence. you on a mortgage or other form of seller financing. Be
• You have accrued interest from a bond. sure to show the buyer’s name, address, and SSN. You
• You are reporting original issue discount (OID) of less must also let the buyer know your SSN. If you don't show
than the amount shown on Form 1099-OID. the buyer’s name, address, and SSN, or let the buyer
• You are reporting interest income of less than the know your SSN, you may have to pay a $50 penalty. If you
amount shown on a Form 1099 due to amortizable bond or the buyer do not have an SSN, use the appropriate TIN
premium. for the filer or recipient of Form 1098. For more
• You are claiming the exclusion of interest from series EE information, see General Instructions for Certain
or I U.S. savings bonds issued after 1989. Information Returns (2024).
• You received interest or ordinary dividends as a Nominees. If you received a Form 1099-INT that
nominee. includes interest you received as a nominee (that is, in
• You had a financial interest in, or signature authority your name, but the interest actually belongs to someone
over, a financial account in a foreign country or you else), report the total on line 1. Do this even if you later
received a distribution from, or were a grantor of, or distributed some or all of this income to others. Under your
transferor to, a foreign trust. last entry on line 1, put a subtotal of all interest listed on
You can list more than one payer on each entry line 1. Below this subtotal, enter “Nominee Distribution”
TIP space for lines 1 and 5, but be sure to clearly and show the total interest you received as a nominee.
show the amount paid next to each payer’s name. Subtract this amount from the subtotal and enter the result
Add the separate amounts paid by the payers listed on an on line 2.
entry space and enter the total in the “Amount” column. If If you received interest as a nominee, you must
you still need more space, attach separate statements TIP give the actual owner a Form 1099-INT (unless
using the same format as lines 1 and 5, but show your the owner is your spouse) and file Forms 1096
totals on Schedule B. Put your name and social security and 1099-INT with the IRS. For more details, see the
number (SSN) on the statements and attach them at the General Instructions for Certain Information Returns and
end of your return. the Instructions for Forms 1099-INT and 1099-OID.
Accrued interest. When you buy bonds between
Specific Instructions 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
Interest and Ordinary Dividends accrued interest, follow the rules earlier under Nominees
to see how to report the accrued interest. But identify the
Part I. Interest amount to be subtracted as “Accrued Interest.”
Line 1. Report on line 1 all of your taxable interest. Original issue discount (OID). If you are reporting
Taxable interest generally should be shown on your Forms OID in an amount less than the amount shown in box 1 or

Sep 30, 2024 Cat. No. 70541Y

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box 8 of Form 1099-OID, follow the rules earlier under Part II. Ordinary Dividends
Nominees to see how to report the OID. But identify the
amount to be subtracted as “OID Adjustment.” However, if You may have to file Form 5471 if, in 2024, you
the payer reported to you a net amount of OID on the bond TIP were an officer or director of a foreign corporation.
reflecting the offset of the gross amount of OID by any You may also have to file Form 5471 if, in 2024,
acquisition premium, no reduction of the amount of OID you owned 10% or more of the total (a) value of a foreign
income reported to you by the payer is permitted on corporation’s stock, or (b) combined voting power of all
Schedule B for the bond. classes of a foreign corporation’s stock with voting rights.
For details, see Form 5471 and its instructions at IRS.gov/
Amortizable bond premium. If you elect to reduce
Form5471.
your interest income on a taxable bond by the amount of
taxable amortizable bond premium, follow the rules earlier Line 5. Report on line 5 all of your ordinary dividends.
under Nominees to see how to report the interest. But This amount should be shown in box 1a of your Forms
identify the amount to be subtracted as “ABP Adjustment.” 1099-DIV or substitute statements.
However, if the payer reported to you a net amount of
Nominees. If you received a Form 1099-DIV that
interest income on the bond reflecting the offset of the
includes ordinary dividends you received as a nominee
gross amount of interest income by the amortizable bond
(that is, in your name, but the ordinary dividends actually
premium, no reduction of the amount of interest income
belong to someone else), report the total on line 5. Do this
reported to you by the payer is permitted on Schedule B
even if you later distributed some or all of this income to
for the bond.
others. Under your last entry on line 5, put a subtotal of all
Tax-exempt interest. If you received any tax-exempt ordinary dividends listed on line 5. Below this subtotal,
interest (including any tax-exempt OID), such as from enter “Nominee Distribution” and show the total ordinary
municipal bonds, each payer should send you a Form dividends you received as a nominee. Subtract this
1099-INT or a Form 1099-OID. In general, your amount from the subtotal and enter the result on line 6.
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 If you received dividends as a nominee, you must
Form 1099-OID, and your tax-exempt OID should be TIP give the actual owner a Form 1099-DIV (unless
shown in box 11 of Form 1099-OID. Enter the total on the owner is your spouse) and file Forms 1096
line 2a of your Form 1040 or 1040-SR. However, if you and 1099-DIV with the IRS. For more details, see the
acquired a tax-exempt bond at a premium, only report the General Instructions for Certain Information Returns and
net amount of tax-exempt interest on line 2a of your Form the Instructions for Form 1099-DIV.
1040 or 1040-SR (that is, the excess of the tax-exempt
interest received during the year over the amortized bond Part III. Foreign Accounts and Trusts
premium for the year). Also, if you acquired a tax-exempt
OID bond at an acquisition premium, only report the net Regardless of whether you are required to file
amount of tax-exempt OID on line 2a of your Form 1040 or TIP FinCEN Form 114 (FBAR), you may be required to
1040-SR (that is, the excess of the tax-exempt OID for the file Form 8938, Statement of Specified Foreign
year over the amortized acquisition premium for the year). Financial Assets, with your income tax return. Failure to
See Pub. 550 for more information about OID, bond file Form 8938 may result in penalties and extension of the
premium, and acquisition premium. statute of limitations. See IRS.gov/Form8938 for more
information.
Also include on line 2a of your Form 1040 or 1040-SR
any exempt-interest dividends from a mutual fund or other Line 7a—Question 1. Check the “Yes” box if at any time
regulated investment company. This amount should be during 2024 you had a financial interest in or signature
shown in box 12 of Form 1099-DIV. authority over a financial account located in a foreign
If an amount is shown in box 9 of Form 1099-INT, you country. See the definitions that follow. Check the “Yes”
must generally report it on line 2g of Form 6251. See the box even if you aren't required to file FinCEN Form 114.
Instructions for Form 6251 at IRS.gov/Form6251 for Financial account. A financial account includes, but
details. isn't limited to, a securities, brokerage, savings, demand,
Line 3. If, during 2024, you cashed series EE or I U.S. checking, deposit, time deposit, or other account
savings bonds issued after 1989 and you paid qualified maintained with a financial institution (or other person
higher education expenses for yourself, your spouse, or performing the services of a financial institution). A
your dependents, you may be able to exclude part or all of financial account also includes a commodity futures or
the interest on those bonds. See Form 8815 at IRS.gov/ options account, an insurance policy with a cash value
Form8815 for details. (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

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States is a foreign financial account. An account If you are required to file FinCEN Form 114 but
maintained with a branch of a foreign bank that is ! don't properly do so, you may have to pay a civil
physically located in the United States isn't a foreign CAUTION penalty up to $10,000. A person who willfully fails
financial account. to report an account or provide account identifying
Signature authority. “Signature authority” is the information may be subject to a civil penalty equal to the
authority of an individual (alone or in conjunction with greater of $100,000 or 50% of the balance in the account
another individual) to control the disposition of assets held at the time of the violation. Willful violations may also be
in a foreign financial account by direct communication subject to criminal penalties.
(whether in writing or otherwise) to the bank or other
financial institution that maintains the financial account. Line 7b. If you are required to file FinCEN Form 114, list
See the FinCEN Form 114 instructions for exceptions. the name(s) of the foreign country or countries in the
Don't consider the exceptions relating to signature space provided on line 7b. Attach a separate statement if
authority in answering Question 1 on line 7a. you need more space.
Other definitions. For definitions of “financial interest,” Line 8. If you received a distribution from a foreign trust,
“United States,” and other relevant terms, see the you must provide additional information. For this purpose,
instructions for FinCEN Form 114. a loan of cash or marketable securities is generally
Line 7a—Question 2. See FinCEN Form 114 and its considered to be a distribution. See the Instructions for
instructions at FINCEN.gov to determine whether you Form 3520 at IRS.gov/Form3520 for details.
must file the form. Check the “Yes” box if you are required If you were the grantor of, or transferor to, a foreign trust
to file the form. Check the “No” box if you aren't required to that existed during 2024, you may have to file Form 3520.
file the form. Don't attach Form 3520 to Form 1040 or Form
If you checked the “Yes” box to Question 2 on line 7a, 1040-SR. Instead, file it at the address shown in its
you must electronically file FinCEN Form 114 with instructions.
Treasury's Financial Crimes Enforcement Network. A U.S. If you were treated as the owner of a foreign trust under
person that has a financial interest in or signature authority the grantor trust rules, you are also responsible for
over foreign financial accounts must file the form if the ensuring that the foreign trust files Form 3520-A. Form
aggregate value of foreign financial accounts exceeds 3520-A is due on March 17, 2025, for a calendar year
$10,000 at any time during 2024. Do not attach FinCEN trust. See the Instructions for Form 3520-A at IRS.gov/
Form 114 to your tax return. Form3520A for details.
For the due date and more information about FinCEN
Form 114, see FINCEN.gov.

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