Which of the following taxpayers is required to file Schedule B, interest and or

Question

Which of the following taxpayers is required to file Schedule B, interest and ordinary dividends, with their return? Assume all income is US source income, and all the taxpayer are single US citizens who may not be claimed as a dependent on anyone elses return. A. John, who earned $400 in ordinary and qualified dividends from a mutual fund investment, B. Robin, who earned $1,550 in corporate bond interest, C. Karen, who earned $700 in tax exempt interest and $950 in ordinary dividends from a stock investment, D. Mitch, who earned $800 in tax exempt interest and $900 of interest from US Treasury Bond

Explanation / Answer

Only Robin is required to file Schedule B as he has earned more than $1,500 in corporate bond interest.

John has earned only $400 in dividends, hence not required to file Schedule B.

Karen has earned $700 as tax free interest but not more than $1,500 from dividends.

Similarly Mitch has earned $800 as tax free interest. He has also earned $900 from US Treasury bonds but this is not accrued interest hence he is also not required to file Schedule B.

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