What is Schedule B income (Interest and dividends)? Using the given information
Paul owns several other investments and received the following information reports for the current tax year:
Form 1009-Div:
General Dynamics – Gross qualified dividends - $600
Form 1099-Int
New Jersey Economic Development bonds – Gross interest - $300
IBM bonds – Gross interest - $600
State of Nebraska bonds – Gross Interest - $200
Form 1098-Mortgage Interest Statement
Sunbelt Credit Union – Mortgage interest - $7,100
Northeast Bank – Home-equity loan interest - $435
Form K-1 Grubstake Mining and Development:
Distribution to shareholder - $1,000
Ordinary income (1% of $200,000) - $2,000
As per IRS, any individual earning more than $1500 in taxable interest or ordinary dividend, has to file Schedule B.
Thus Schedule B income is taxable interest income or ordinary dividend income.
As the interest and ordinary dividend in the above given case is $1500, Mr.Paul has to file Schedule B
Form 1009-Div:
General Dynamics – Gross qualified dividends - $600
Form 1099-Int
New Jersey Economic Development bonds – Gross interest - $300
IBM bonds – Gross interest - $600
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