Fillable Schedule B Form 1040 (2021)

What Is a Form 1040 Schedule B 2021

Form 1040 Schedule B 2021 is an IRS document that taxpayers must attach to their Form 1040, 1040-SR, or 1040-NR tax return. This particular schedule is designed to report the interest and ordinary dividends received during the tax year specified by the form's title, in this case, 2021. The form requires detailed information on each interest source or dividend exceeding a certain threshold, ensuring the proper taxation of investment income.

When to Use Schedule B 1040 Form 2021

There are specific situations where one must utilize the Schedule B 1040 Form 2021. Taxpayers should include this form with their tax filing if they fall into one or more of the following categories:

• The total taxable interest or ordinary dividends exceeds $1,500 for the year.
• They received interest from a seller-financed mortgage, and the buyer used the property as a personal residence.
• They accrued or have to report the original issue discount (OID) in an amount less than the amount shown on Form 1099-OID.
• Taxpayers who have received a portion of the interest from a bond or have been involved in transactions with foreign accounts and trusts.

How To Fill Out IRS 2021 Form 1040 Schedule B

Filling out the IRS 2021 Form 1040 Schedule B is straightforward if you have all the necessary information. Here's a step-by-step guide:

• At the top of the form, enter your name and social security number as they appear on your Form 1040.
• Part I – Interest: List each payer's name and the amount of interest received or credited in the relevant year. Be sure to report each source separately.
• Part II – Ordinary Dividends: Similar to interest, you will list every payer and the dividends received.
• Part III – Foreign Accounts and Trusts: You should complete this section if you had a foreign account, received a distribution from, were a grantor of, or were a transferor to a foreign trust.

When to File 1040 Form 2021 Schedule B

The 1040 Form 2021 Schedule B should be filed alongside your tax return by the tax deadline for the corresponding tax year. Typically, the deadline for filing tax returns and any accompanying schedules is April 15 of the year following the reporting year unless an extension is requested and granted. Therefore, for tax year 2021, your Schedule B and other tax documents should have been filed by April 15, 2022, or by the extended deadline if applicable. If you are filing late, attaching Schedule B to your return is important to ensure that all your interest and dividend income is reported accurately.