Question

What is Schedule B income (Interest and dividends)? Using the given information Paul owns several other...

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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