Schedule B Help
Interest
Income
Line 2 - Tax Exempt Interest
If you received any tax-exempt interest, such as from municipal bonds,
each payer should send you a Form 1099-INT. Your tax-exempt interest, including
any exempt-interest dividends from a mutual fund or other regulated investment
company, should be included in box 8 of Form 1099-INT. Enter the total on line
1. Do not include interest earned on your IRA, health savings account, Archer
or Medicare Advantage MSA, or Coverdell education savings account.
Line 3 - Nominee Distributions
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 interest you received as a nominee on line 2. Do this
even if you later distributed some or all of this income to others.
Line 4 - 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, report
the total accrued interest on line 3.
Line 5 - Original Issue Discount (OID)
If you are reporting OID in an amount less than the amount shown on
Form 1099-OID, enter the amount to be subtracted as “OID Adjustment” on line 4.
Line 7 - Amortizable Bond Premium
If you are reducing your interest income on a bond by the amount of
amortizable bond premium, enter the amount to be subtracted as “ABP Adjustment”
on line 6.
Ordinary
Dividend
Line 1 - Nominee Distributions
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 ordinary dividends you
received as a nominee on line 1. Do this even if you later distributed some or
all of this income to others.
Line 3
Check the “Yes” box if at any time during 2015 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 are not required to file FinCEN Form 114, Report of Foreign Bank and
Financial Accounts (FBAR).
Line 4
See FinCEN Form 114 and its instructions 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 are not required to file the form.
If you checked the “Yes” box to Question 2 on line 7a, FinCEN Form 114 must be
electronically filed with the Financial Crimes Enforcement Network (FinCEN) at
the following website:
http://bsaefiling.fincen.treas.gov/main.html. Do not attach FinCEN Form
114 to your tax return. To be considered timely, FinCEN Form 114 must be
received by June 30, 2016.
CAUTION: If you are required to file FinCEN Form 114 but do not
properly do so, you may have to pay a civil 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
percent of the balance in the account at the time of the violation. Willful
violations may also be subject to criminal penalties.
Line 5
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 2015, 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, 2016, for a calendar year trust. See
the instructions for Form 3520-A for more details.
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