So, let’s look at 2a and 2b. If these don’t apply to you, then you can skip over these. If these apply to you then you should receive 1099’s (1099-INT, 1099-DIV, or 1099-OID) reporting what you’ve received.

INT stands for interest. DIV stands for dividends such as from a mutual fund or other regulated investment company. OID stands for Original Issue Discount. It is when companies sell their face value bonds at a discount.

Your tax-exempt interest should be shown in box 8 of Form 1099-INT and box 11 on 1099-OID or 1099-DIV. If you have more than one, then add the amounts together and enter the total in box 2a.

Taxable interest income will go in box 2b. You must fill out Schedule B if the total is more than $1,500, because, as you have become aware, the IRS must include extra forms and schedules where they can just for their leisurely reading pleasure.

You must also fill out Schedule B if you had a seller-financed mortgage and the buyer used the property as a personal residence. As usual, there are circumstances that require more math, more reading and, yes, possibly more exciting, and fun-filled forms, but
hopefully, this is not the case for you. If you are unsure and need help filing your taxes, contact your trusted tax professional to get your taxes filed accurately and professionally.

Schedule your next tax appointment with Angie Love’s Taxes.