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i1040x
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Department of the Treasury
Internal Revenue Service

2023 Instructions for Schedule B
Use Schedule B (Form 1040) if any of the following applies.
Interest and • You had over $1,500 of taxable interest or ordinary dividends.
• You received interest from a seller-financed mortgage and the buyer used the
Ordinary property as a personal residence.
• You have accrued interest from a bond.
Dividends • 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 transfer-
or to, a foreign trust.

Section references are to the Internal bonds. Also include any accrued market line 1. Do this even if you later distrib-
Revenue Code unless otherwise noted. discount that is includible in income and uted some or all of this income to others.
any gain on a contingent payment debt Under your last entry on line 1, put a
Future Developments instrument that is includible in income subtotal of all interest listed on line 1.
For the latest information about devel- as interest income. List each payer’s Below this subtotal, enter “Nominee
opments related to Schedule B (Form name and the amount. Don't report on Distribution” and show the total interest
1040) and its instructions, such as legis- line 1 any tax-exempt interest. See you received as a nominee. Subtract this
lation enacted after they were published, Tax-exempt interest, later, for more in- amount from the subtotal and enter the
go to IRS.gov/ScheduleB. formation. result on line 2.
For more information on stated inter- If you received interest as a
est, original issue discount (OID), mar- TIP nominee, you must give the ac-
ket discount, contingent payment debt tual owner a Form 1099-INT
Specific instruments, and premium, see Pub. 550 (unless the owner is your spouse) and
Instructions and Pub. 1212. file Forms 1096 and 1099-INT with the
You can list more than one pay- Seller-financed mortgages. If you IRS. For more details, see the General
TIP er on each entry space for lines sold your home or other property and Instructions for Certain Information Re-
1 and 5, but be sure to clearly the buyer used the property as a personal turns and the Instructions for Forms
show the amount paid next to each pay- residence, list first any interest the buyer 1099-INT and 1099-OID.
er’s name. Add the separate amounts paid you on a mortgage or other form of
paid by the payers listed on an entry seller financing. Be sure to show the Accrued interest. When you buy
space and enter the total in the buyer’s name, address, and SSN. You bonds between interest payment dates
“Amount” column. If you still need more must also let the buyer know your SSN. and pay accrued interest to the seller,
space, attach separate statements using If you don't show the buyer’s name, ad- this interest is taxable to the seller. If
the same format as lines 1 and 5, but dress, and SSN, or let the buyer know you received a Form 1099 for interest as
show your totals on Schedule B. Put your SSN, you may have to pay a $50 a purchaser of a bond with accrued inter-
your name and social security number penalty. If you or the buyer do not have est, follow the rules earlier under Nomi-
(SSN) on the statements and attach them an SSN, use the appropriate TIN for the nees to see how to report the accrued in-
at the end of your return. filer or recipient of Form 1098. For terest. But identify the amount to be sub-
more information, see General tracted as “Accrued Interest.”
Part I. Interest Instructions for Certain Information Original issue discount (OID). If
Returns (2023). you are reporting OID in an amount less
Line 1. Report on line 1 all of your tax-
able interest. Taxable interest generally Nominees. If you received a Form than the amount shown in box 1 or
should be shown on your Forms 1099-INT that includes interest you re- box 8 of Form 1099-OID, follow the
1099-INT, Forms 1099-OID, or substi- ceived as a nominee (that is, in your rules earlier under Nominees to see how
tute statements. Include interest from name, but the interest actually belongs to report the OID. But identify the
series EE, H, HH, and I U.S. savings to someone else), report the total on amount to be subtracted as “OID Adjust-

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Jun 14, 2023 Cat. No. 70541Y

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ment.” However, if the payer reported to If an amount is shown in box 9 of Part III. Foreign Accounts
you a net amount of OID on the bond re- Form 1099-INT, you must generally re-
and Trusts
flecting the offset of the gross amount of port it on line 2g of Form 6251. See the
OID by any acquisition premium, no re- Instructions for Form 6251 at IRS.gov/ Regardless of whether you are
duction of the amount of OID income Form6251 for details. TIP required to file FinCEN Form
reported to you by the payer may be Line 3. If, during 2023, you cashed ser- 114 (FBAR), you may be re-
needed on Schedule B for the bond. ies EE or I U.S. savings bonds issued af- quired to file Form 8938, Statement of
Amortizable bond premium. If you ter 1989 and you paid qualified higher Specified Foreign Financial Assets, with
elect to reduce your interest income on a education expenses for yourself, your your income tax return. Failure to file
taxable bond by the amount of taxable spouse, or your dependents, you may be Form 8938 may result in penalties and
amortizable bond premium, follow the able to exclude part or all of the interest extension of the statute of limitations.
rules earlier under Nominees to see how on those bonds. See Form 8815 at See IRS.gov/Form8938 for more infor-
to report the interest. But identify the IRS.gov/Form8815 for details. mation.
amount to be subtracted as “ABP Ad- Part II. Ordinary Dividends Line 7a—Question 1. Check the “Yes”
justment.” However, if the payer repor- box if at any time during 2023 you had a
ted to you a net amount of interest in- You may have to file Form 5471 financial interest in or signature authori-
come on the bond reflecting the offset of TIP if, in 2023, you were an officer ty over a financial account located in a
the gross amount of interest income by or director of a foreign corpo- foreign country. See the definitions that
the amortizable bond premium, no re- ration. You may also have to file Form follow. Check the “Yes” box even if you
duction of the amount of interest income 5471 if, in 2023, you owned 10% or aren't required to file FinCEN Form 114.
reported to you by the payer is needed more of the total (a) value of a foreign
on Schedule B for the bond. corporation’s stock, or (b) combined Financial account. A financial ac-
voting power of all classes of a foreign count includes, but isn't limited to, a se-
Tax-exempt interest. If you received corporation’s stock with voting rights. curities, brokerage, savings, demand,
any tax-exempt interest (including any For details, see Form 5471 and its in- checking, deposit, time deposit, or other
tax-exempt OID), such as from munici- structions at IRS.gov/Form5471. account maintained with a financial in-
pal bonds, each payer should send you a stitution (or other person performing the
Form 1099-INT or a Form 1099-OID. In Line 5. Report on line 5 all of your or- services of a financial institution). A fi-
general, your tax-exempt stated interest dinary dividends. This amount should be nancial account also includes a com-
should be shown in box 8 of Form shown in box 1a of your Forms modity futures or options account, an in-
1099-INT or, for a tax-exempt OID 1099-DIV or substitute statements. surance policy with a cash value (such
bond, in box 2 of Form 1099-OID, and as a whole life insurance policy), an an-
your tax-exempt OID should be shown Nominees. If you received a Form
in box 11 of Form 1099-OID. Enter the 1099-DIV that includes ordinary divi- nuity policy with a cash value, and
total on line 2a of your Form 1040 or dends you received as a nominee (that shares in a mutual fund or similar
1040-SR. However, if you acquired a is, in your name, but the ordinary divi- pooled fund (that is, a fund that is avail-
tax-exempt bond at a premium, only re- dends actually belong to someone else), able to the general public with a regular
port the net amount of tax-exempt inter- report the total on line 5. Do this even if net asset value determination and regu-
est on line 2a of your Form 1040 or you later distributed some or all of this lar redemptions).
1040-SR (that is, the excess of the income to others. Under your last entry Financial account located in a for-
tax-exempt interest received during the on line 5, put a subtotal of all ordinary eign country. A financial account is lo-
year over the amortized bond premium dividends listed on line 5. Below this cated in a foreign country if the account
for the year). Also, if you acquired a subtotal, enter “Nominee Distribution” is physically located outside of the Uni-
tax-exempt OID bond at an acquisition and show the total ordinary dividends ted States. For example, an account
premium, only report the net amount of you received as a nominee. Subtract this maintained with a branch of a U.S. bank
tax-exempt OID on line 2a of your Form amount from the subtotal and enter the that is physically located outside of the
1040 or 1040-SR (that is, the excess of result on line 6. United States is a foreign financial ac-
the tax-exempt OID for the year over the If you received dividends as a count. An account maintained with a
amortized acquisition premium for the TIP nominee, you must give the ac- branch of a foreign bank that is physi-
year). See Pub. 550 for more informa- tual owner a Form 1099-DIV cally located in the United States isn't a
tion about OID, bond premium, and ac- (unless the owner is your spouse) and foreign financial account.
quisition premium. file Forms 1096 and 1099-DIV with the Signature authority. “Signature au-
Also include on line 2a of your Form IRS. For more details, see the General thority” is the authority of an individual
1040 or 1040-SR any exempt-interest Instructions for Certain Information Re- (alone or in conjunction with another in-
dividends from a mutual fund or other turns and the Instructions for Form dividual) to control the disposition of as-
regulated investment company. This 1099-DIV. sets held in a foreign financial account
amount should be shown in box 12 of by direct communication (whether in
Form 1099-DIV. writing or otherwise) to the bank or oth-
er financial institution that maintains the

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financial account. See the FinCEN Form file the form if the aggregate value of provided on line 7b. Attach a separate
114 instructions for exceptions. Don't foreign financial accounts exceeds statement if you need more space.
consider the exceptions relating to sig- $10,000 at any time during 2023. Do Line 8. If you received a distribution
nature authority in answering Question 1 not attach FinCEN Form 114 to your tax from a foreign trust, you must provide
on line 7a. return. additional information. For this purpose,
Other definitions. For definitions of For the due date and more informa- a loan of cash or marketable securities is
“financial interest,” “United States,” and tion about FinCEN Form 114, see generally considered to be a distribution.
other relevant terms, see the instructions FINCEN.gov. See the Instructions for Form 3520 at
IRS.gov/Form3520 for details.
for FinCEN Form 114. If you are required to file Fin-
If you were the grantor of, or trans-
Form 114 and its instructions at CAUTION erly do so, you may have to pay
Line 7a—Question 2. See FinCEN ! CEN Form 114 but don't prop- feror to, a foreign trust that existed dur-
FINCEN.gov to determine whether you a civil penalty up to $10,000. A person ing 2023, you may have to file Form
must file the form. Check the “Yes” box who willfully fails to report an account 3520.
if you are required to file the form. or provide account identifying informa- Don't attach Form 3520 to Form 1040
Check the “No” box if you aren't re- tion may be subject to a civil penalty or Form 1040-SR. Instead, file it at the
quired to file the form. equal to the greater of $100,000 or 50% address shown in its instructions.
If you checked the “Yes” box to of the balance in the account at the time If you were treated as the owner of a
Question 2 on line 7a, you must elec- of the violation. Willful violations may foreign trust under the grantor trust
tronically file FinCEN Form 114 with also be subject to criminal penalties. rules, you are also responsible for ensur-
Treasury's Financial Crimes Enforce- Line 7b. If you are required to file Fin- ing that the foreign trust files Form
ment Network. A U.S. person that has a CEN Form 114, list the name(s) of the 3520-A. Form 3520-A is due on March
financial interest in or signature authori- foreign country or countries in the space 15, 2024, for a calendar year trust. See
ty over foreign financial accounts must the Instructions for Form 3520-A at
IRS.gov/Form3520A for details.

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