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Form 1040-SB: 1040 (Schedule B)
IRS Form 1040 (Schedule B) is used to report interest and dividends on the individual's tax return for those who own financial accounts. If taxable interest or ordinary dividends exceed $1,500, Part III must be completed.
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IRS Form 1040-SB - 1040 (Schedule B)
IRS Form 1040 (Schedule B) is used to report interest and dividends on the individual's tax return for those who own financial accounts. If taxable interest or ordinary dividends exceed $1,500, Part III must be completed.
Risk Radar
Scan points- 1Failing to report a foreign account when required can lead to penalties up to $10,000 or even greater.
- 2Failing to list buyer's name, address, and SSN on a seller-financed mortgage entry (risk of $50 penalty).
- 3Not checking 'Yes' on line 7a if you had a financial interest in a foreign account during 2025.
- 4Omitting Part III when taxable interest or ordinary dividends exceed $1,500.
- 5Failing to file Form 8938 even if required by having a foreign account or trust.
Plain English
This form helps you report the interest earned and dividends received from your investments so that the IRS knows how much to tax. It also tracks foreign bank accounts and trusts if you have them. If you sold a home using seller financing, this form helps track payments made by the buyer.
Submission Date
- Filing date: 2025-11-05 22:10:20
- Preparation window: collect IDs, supporting records, and signatures in advance.
- Final review: verify names, dates, and required fields before submission.
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What this form is for
- Use this form when you had over $1,500 of taxable interest or ordinary dividends.
- Do not use this form when your total taxable interest or ordinary dividends are less than $1,500.
- Check Form 8815 instead when excluding part or all of the interest from series EE or I U.S. savings bonds after 1989.
Form selector
Use this form or another form?
Nominee received interest/dividends
You must report all ordinary dividends on line 5, even if you are a nominee.
✓ Check Line 5 for dividend reporting details.
Foreign account interest/dividends
Even if not required to file FinCEN Form 114, you may need to file Form 8938 with your return.
✓ Check line 7a on Schedule B.
Officer/Director of foreign corp
You may have to file Form 5471 if you were an officer or director of a foreign corporation in 2025.
✓ Review Part II requirements.
Deadline or filing window
The form covers activity during the 2025 tax year. If you have over $1,500 in taxable interest or ordinary dividends, Part III must be completed for that period. There is no specific submission deadline date cited, but filing requirements are tied to the 2025 reporting window.
Checklist
What you need before filling it out
Line 1 Payer
Name of payer · Part I
Amount (Part I)
Total amounts added up from line 1 entries · Part I
Line 5 Dividends
All ordinary dividends received · Part II
Line 7a, Question 1
Financial interest in/signature authority over a foreign account (during 2025) · Part III
Required Filing Status
Determine requirement based on aggregate value exceeding $10,000 in foreign accounts (during 2025) · Instructions p.3
Before you submit
- 1Verify that your name and SSN are correctly printed on Schedule B (Form 1040).
- 2Confirm all payers listed on lines 1 or 5 have their amounts clearly shown next to their names.
- 3Ensure you list a seller-financed mortgage interest first if applicable, including the buyer's SSN/address.
- 4Check the 'Yes' box on line 7a, Question 1 if you had any foreign financial account during 2025.
- 5Confirm that Line 5 reports all ordinary dividends received.
- 6If required to file FinCEN Form 114, list the country name(s) on line 7b.
- 7Add up all amounts listed on line 1 and enter the total on line 2.
How to file this form
- 1Complete Part I by listing each payer and their interest amount on lines 1 and 2. . . . . . . . . . . . . . . . . . .
- 2Report all ordinary dividends received in Part II onto Line 5, ensuring the total matches your Form 1099-DIV Box 1a.
- 3Complete Part III by checking boxes on line 7a regarding foreign accounts and listing countries on line 7b if necessary. . . . . . .
- 4Attach Schedule B (Form 1040) to your main Form 1040 or Form 1040-SR before mailing. . . . . . .
Known limitations
- 1If interest or ordinary dividends do not exceed $1,500 (implied by the previously written preamble), Part III is not required to be completed.
- 2A person must file Form 1040 (Schedule B) if the aggregate value of foreign financial accounts exceeds $10,000 at any time during 2025.
- 3If interest is reported as a nominee, it must be reported on line 1 even if some or all of that income is later distributed to others.
- 4When reporting tax-exempt OID acquired at an acquisition premium, only the net amount of tax-exempt OID should be reported on line 2a (Form 1040 or 1040-SR).
- 5If you receive exempt-interest dividends from a mutual fund or other regulated investment company, that amount must be included on line 2a of Form 1040 or 1040-SR if it is shown in box 12 of Form 1099-DIV.
Field map
Compact field-by-field guide
Personal Info
3 items
Enter your legal first and last name as shown on your Social Security card.
Your SSN must match IRS records exactly.
Current mailing address including street, city, state, and ZIP code.
Filing Status
1 items
Select: Single, Married Filing Jointly, Married Filing Separately, Head of Household, or Qualifying Surviving Spouse.
Income
1 items
Sum of all income sources — wages, interest, dividends, business income, capital gains, unemployment, retirement, and other income.
Adjustments
1 items
Total income minus above-the-line deductions such as IRA contributions, student loan interest, and HSA contributions.
Deductions
1 items
Choose the higher of the standard deduction for your filing status or total itemized deductions from Schedule A.
Tax
1 items
AGI minus deductions. This determines your tax bracket and the amount of tax owed.
Payments
1 items
Sum of federal tax withheld, estimated tax payments, and refundable credits like the Child Tax Credit.
Signatures
1 items
You must sign and date the return. Unsigned returns are invalid.
Almost done reviewing the fields?
Fillable formOpen in Editor->The current edition is 20/25. For the latest information regarding Schedule B (Form 1040) and its instructions, filers should visit IRS.gov/ScheduleB.
What changed or needs a fresh check
- Edition date — confirm the revision reads 20/25.
- Form Number — confirm the form is Schedule B (Form 1040).
- Attachment sequence — confirm attachment number 08 is present.
- Social Security Number — ensure your SSN is correctly listed on the return.
Quick Facts
Downloads
After you file
- 1Keep a copy of the filed IRS Form 1040 (Schedule B) for your records.
- 2If you report seller-financed mortgage interest, ensure the buyer's name, address, and SSN are shown on the form.
- 3When reporting nominee interest, give the actual owner a Form 1099-INT (unless the owner is your spouse) and file Forms 1096 and 1099-INT with the IRS.
- 4If you report foreign financial accounts exceeding $10,000, do not attach FinCEN Form 114 to the tax return; instead, file it according to instructions (though the instruction implies attaching is an option for reference).
- 5Keep documentation showing how accrued interest was identified and subtracted if applicable.
Sources
- SRCInstructions p.1 — If you sold a home/property and the buyer is a personal residence user, list that interest first on line 1 of Form 1040 (Schedule B).
- SRCInstructions p.1 — A $50 penalty may be incurred if the buyer's name, address, SSN are not shown or the buyer’s SSN is not provided for seller-financed mortgage interest.
- SRCInstructions p.1 — If you received nominee interest on a Form 1099-INT, report the total on line 1 of Form 1040 (Schedule B).
- SRCInstructions p.1 — On line 2 of Form 1040 (Schedule B), enter the subtotal from line 1 minus the 'Nominee Distribution' amount.
- SRCInstructions p.2 — If you received interest as a nominee, you must give the actual owner a Form 1099-INT (unless the owner is your spouse) and file Forms 1096 and 1099-INT with the IRS.
- SRCInstructions p.3 — A person must file if foreign financial account value exceeds $10,000 at any time during 2025.
- SRCInstructions p.3 — If required to file FinCEN Form 114, list the name(s) of the foreign country or countries on line 7b of Form 1040 (Schedule B).
- SRCInstructions p.3 — Line 8 requires additional information if you received a distribution from a foreign trust.
- SRCForm p.1 — The form is attached to Form 1040 or 1040-SR and covers Interest and Ordinary Dividends for the year 2025.
Common confusion points
What do I list first on line 1 of Schedule B?
If you have seller-financed mortgage interest where the buyer lives in their home, that interest must be listed before any other interest.
→ Check Line 1 instructions for Form 1040 (Schedule B).
How do I handle nominee income from a brokerage firm?
Report the total on line 1, even if you distribute some or all of it later to others.
→ Review Instructions p.1 regarding Nominees.
What is the difference between the subtotal and line 2?
The subtotal is the sum of all interest listed on line 1; Line 2 is that subtotal minus the 'Nominee Distribution' amount.
→ See Instructions p.1, under the instructions for Schedule B (Form 1040).
When must I provide extra info if a distribution comes from a foreign trust?
You must provide additional information on line 8 of Form 1040 (Schedule B) if you received a distribution from a foreign trust.
→ Refer to Instructions p.3, Line 8.
Do I attach FinCEN Form 114 when filing Schedule B?
No, do not attach FinCEN Form 114 to your tax return; file it at the address shown in its instructions.
→ See Instructions p.3.
What if my accrued interest is from a bond purchase?
Follow the rules under Nominees to report how that accrued interest should be reported on Schedule B, and identify the amount subtracted as 'Accrued Interest.'
→ Check Instructions p.2 regarding Accrued Interest.
Workflow map
Related forms and next steps
Before
Current
After
Often used with
⚠ If something goes wrong
- You may need to file Form 3520 (if you were the grantor/transferor of a foreign trust) or Form 3520-A (for a calendar year trust).
Questions about IRS Form 1040-SB
What is IRS Form 1040-SB used for?
This form helps you report the interest earned and dividends received from your investments so that the IRS knows how much to tax. It also tracks foreign bank accounts and trusts if you have them. If you sold a home using seller financing, this form helps track payments made by the buyer.
Who must file IRS Form 1040-SB?
Individuals who own financial accounts must file Form 1040 (Schedule B). This applies even if they are not required to file FinCEN Form 114 or Form 8938.
What information does IRS Form 1040-SB require?
The form collects details on interest and dividends in Part II, lists foreign assets and trusts in Part III, and includes specific sections for seller-financed mortgages. Line 7a asks about having a financial interest or signature authority over a foreign account during 2025.
When is IRS Form 1040-SB due?
The filing period is based on the tax year 2025. No specific submission deadline date is stated in the source, but Part III must be completed if taxable interest or ordinary dividends exceed $1,500.
How do I complete IRS Form 1040-SB?
First, complete Part II by listing payers on line 5 and summing them on line 6. Next, if needed, complete Part III regarding foreign accounts/trusts. Finally, check the boxes on line 7a to confirm your financial interest status before submitting.
What happens if IRS Form 1040-SB is filed incorrectly?
Failure to file Form 8938 may result in penalties and an extension of the statute of limitations. If required to file FinCEN Form 114 but done improperly, a civil penalty up to $10,000 may apply.
What do I list first on line 1 of Schedule B?
If you have seller-financed mortgage interest where the buyer lives in their home, that interest must be listed before any other interest. Check Line 1 instructions for Form 1040 (Schedule B).
How do I handle nominee income from a brokerage firm?
Report the total on line 1, even if you distribute some or all of it later to others. Review Instructions p.1 regarding Nominees.
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