Schedule B Interest Question
Schedule B Interest Question
If boxes 1 & 3 both contain positive values on the 1099-INT from a particular payer, is it acceptable to report the sum of these amounts on a single line of Schedule B Part I?
Re: Schedule B Interest Question
Box 3 is exempted from State Income tax.
For your federal return it will not matter.
For your federal return it will not matter.
Re: Schedule B Interest Question
I think you just put the exact amounts from Lines 1 & 3 in the separate boxes on the worksheet (if you are using software). Do not add them, as the single amount should be the amount you actually earned/received/is taxable. Make sense? Don't double your burden! If the amounts are different, it will carry down to your state tax return.... But do not add them together; they are duplicative.
Salvia Clevelandii "Winifred Gilman" my favorite. YMMV; not a professional advisor.
Re: Schedule B Interest Question
I'm not using software. I'm using Free File Fillable Forms, which is basically the same as paper forms.CAsage wrote: ↑Mon Feb 12, 2018 6:22 pm I think you just put the exact amounts from Lines 1 & 3 in the separate boxes on the worksheet (if you are using software). Do not add them, as the single amount should be the amount you actually earned/received/is taxable. Make sense? Don't double your burden! If the amounts are different, it will carry down to your state tax return.... But do not add them together; they are duplicative.
It makes sense to me that I should report the sum on one line. My concern is with the IRS computers flagging my return if the exact values from the 1099-INT boxes don't appear on Schedule B.
Re: Schedule B Interest Question
They don't appear to be duplicative. From IRS instructions for 1099-INT:
Box 1. Shows taxable interest paid to you during the calendar year by the payer. This does not include interest shown in box 3.,,
Box 3. Shows interest on U.S. Savings Bonds, Treasury bills, Treasury bonds, and Treasury notes. This may or may not all be taxable. See Pub. 550. This interest is exempt from state and local income taxes. This interest is not included in box 1...
Re: Schedule B Interest Question
Maybe I'm being dense, but I don't think anyone's addressed my question.
Let's say Box 1 contains a value of $200, and Box 3 contains a value of $100.
Do I make a single $300 entry on Schedule B for the payer, or do I make one $100 entry and one $200 entry, or does it not matter?
Let's say Box 1 contains a value of $200, and Box 3 contains a value of $100.
Do I make a single $300 entry on Schedule B for the payer, or do I make one $100 entry and one $200 entry, or does it not matter?
Re: Schedule B Interest Question
$300, because Report on line 1 all of your taxable interest.xenial wrote: ↑Mon Feb 12, 2018 8:22 pm Maybe I'm being dense, but I don't think anyone's addressed my question.
Let's say Box 1 contains a value of $200, and Box 3 contains a value of $100.
Do I make a single $300 entry on Schedule B for the payer, or do I make one $100 entry and one $200 entry, or does it not matter?
Re: Schedule B Interest Question
Either way is fine. IRS is only concerned w/ the total. Might to useful tho to list as separate items to remind you that they are treated differently for state.
Re: Schedule B Interest Question
FiveK and kaneohe, thanks!
If the IRS is only concerned with the total, what happens when you include a negative entry for accrued interest, which doesn't appear anywhere on 1099-INT, and then file electronically? I use Free File Fillable Forms, and I prefer not to receive love notes from the IRS.
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Re: Schedule B Interest Question
I don't think that's determinative. The fourteen lines above line 2 are all line 1 (as are the attached statements if you need more than 14). So either one entry of $300 or two entries of totaling $300 satisfy the instruction to report all of the income on line 1.FiveK wrote: ↑Mon Feb 12, 2018 8:48 pm$300, because Report on line 1 all of your taxable interest.xenial wrote: ↑Mon Feb 12, 2018 8:22 pm Maybe I'm being dense, but I don't think anyone's addressed my question.
Let's say Box 1 contains a value of $200, and Box 3 contains a value of $100.
Do I make a single $300 entry on Schedule B for the payer, or do I make one $100 entry and one $200 entry, or does it not matter?
it may or may not be related that some years ago the IRS prohibited brokerages from providing a total on a 1099-DIV because on line 5 the IRS wanted taxpayers to put individual fund distributions such as "Vanguard Total Stock Market Index $500; Vanguard Treasury MM $100" and not a single total "Vanguard $600"
Re: Schedule B Interest Question
Agreed, it's not. But it is the simplest correct way.
Re: Schedule B Interest Question
If you have room to provide details, it is probably better to enter such details separately. They will hopefully be more self explanatory and minimize the love notes.........tho if you have a good explanation, no reason to fear the love notes. My experience mostly is combining several funds on a single line of the dividend part of Sch B. I also provide the individual numbers/names so I can trace where the subtotals come from but I suspect that IRS just looks at the total of all of the entries. In any case, no love notes ......so far.xenial wrote: ↑Mon Feb 12, 2018 9:30 pm FiveK and kaneohe, thanks!
If the IRS is only concerned with the total, what happens when you include a negative entry for accrued interest, which doesn't appear anywhere on 1099-INT, and then file electronically? I use Free File Fillable Forms, and I prefer not to receive love notes from the IRS.
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Re: Schedule B Interest Question
According to the instructions for Schedule B:
It appears that with a brokerage account, the brokerage is the payer, while with mutual funds that are directly purchased from the fund, each mutual fund is a separate payer.
Later addition: On the 2017 1099 statement for a Vanguard mutual funds account that I have, each fund has its own "PAYER'S federal identification number". On the 2017 1099 statement for a (non-Vanguard) brokerage account that I have, at the top of each page there is a "Payer's Fed ID Number" that is the same on every page. The investments in the brokerage account do not have a Fed ID Number.
However, 1099 statements I have received for a Vanguard mutual funds account (not a Vanguard brokerage account) contains: "Please Note: Each specific fund name, NOT Vanguard, must be reported along with the related tax information on Form 1040 Schedule(s) B and D."You can list more than one payer on each entry space for lines 1 and 5, but be sure to clearly show the amount paid next to each payer's name. Add the separate amounts paid by the payers listed on an entry space and enter the total in the “Amount” column.
It appears that with a brokerage account, the brokerage is the payer, while with mutual funds that are directly purchased from the fund, each mutual fund is a separate payer.
Later addition: On the 2017 1099 statement for a Vanguard mutual funds account that I have, each fund has its own "PAYER'S federal identification number". On the 2017 1099 statement for a (non-Vanguard) brokerage account that I have, at the top of each page there is a "Payer's Fed ID Number" that is the same on every page. The investments in the brokerage account do not have a Fed ID Number.
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Re: Schedule B Interest Question
I would list:
Bank X $200
Bank X, US Savings Bonds $100
That's what we were taught years ago in tax school.
Bank X $200
Bank X, US Savings Bonds $100
That's what we were taught years ago in tax school.