Is the Schedule B requirement based on an aggregate total or individual accounts?

So I've been trying to figure out the Schedule B filing requirements for my taxes this year and I'm really confused. The Schedule B instructions say you need to file it if you have over a certain amount in interest or dividends, but I can't tell if that's counting all my accounts together or if it's just looking at each account separately. I have several bank accounts and investments, none of which individually go over the threshold, but when I add them all up they definitely do. Do I need to file Schedule B in this case? Or is it only required if any single account exceeds the limit? I didn't have to file it last year because I had fewer accounts, but now I've diversified a bit and I'm not sure if I've crossed that threshold with how they count it. Would appreciate any insight on whether the Schedule B requirement is based on an aggregate of all accounts or if they look at each one individually. Thanks!

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19 comments

Omar Hassan

•8M

The Schedule B requirement is definitely based on the aggregate (total) amount across all your accounts, not individual accounts. If you received more than $1,500 in total interest and/or ordinary dividends combined from all sources, you'll need to file Schedule B. The IRS doesn't care if it came from one account or twenty accounts - they're looking at the combined total. So even if no single account exceeds the threshold, if your total interest and dividends from all sources is over $1,500, you'll need to complete Schedule B. Also worth noting that even if you don't meet the $1,500 threshold, you still need to file Schedule B if you had a financial interest in or signature authority over a foreign financial account, or if you received a distribution from a foreign trust.

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Omar Hassan

•8M

That's exactly right - your example of $800 from one bank and $900 from another would put you at $1,700 total, which exceeds the $1,500 threshold, so you would need to file Schedule B. For your question about tax-exempt interest, it's important to note that only taxable interest and ordinary dividends count toward the $1,500 threshold for Schedule B. Tax-exempt interest (like from municipal bonds) doesn't count toward this threshold, though you still need to report it elsewhere on your return (Line 2a of Form 1040).

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Diego Vargas

•8M

After struggling with this exact problem last year, I found a tool that saved me so much time with organizing all my accounts. I used https://taxr.ai when I was trying to figure out which of my accounts needed to be reported where. Their document analyzer helped me identify which accounts were pushing me over the threshold for Schedule B requirements. The tool basically sorted all my 1099-INT and 1099-DIV forms and calculated my aggregate totals automatically. It actually found two small dividend payments I had completely forgotten about that pushed me over the threshold.

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Diego Vargas

•8M

It does handle foreign accounts! It has specific features for identifying FBAR and FATCA reporting requirements based on your foreign accounts, which was super helpful for me since I have a small account in Canada that I wasn't sure how to report. Regarding data security, I had the same concerns initially. What I liked is that they process documents directly on your device rather than uploading them to a server. They have a whole section on their privacy policy about how they handle sensitive financial information. I was comfortable with it after reading through their security practices.

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Anastasia Fedorov

•8M

I actually went ahead and tried https://taxr.ai after posting my skeptical comment here. I'm honestly surprised by how helpful it was! I've been keeping a spreadsheet of all my interest and dividends for years, but the document analyzer found two small 1099s from reinvested dividends that I had completely missed. Turns out I was already over the Schedule B threshold by about $320 when counting everything, and I would have filed incorrectly without realizing it. The tool also helped me figure out which accounts needed to be reported on FBAR since I have some money in accounts overseas from when I worked abroad. Really glad I gave it a shot despite my initial skepticism.

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Sean Doyle

•8M

If you're having trouble getting answers from the IRS about your Schedule B questions, I'd recommend using https://claimyr.com to get through to an actual IRS agent. I spent WEEKS trying to get clarification on some complex Schedule B requirements related to my foreign accounts, and kept getting disconnected or waiting for hours. Used Claimyr and got connected to an IRS rep in about 20 minutes instead of the usual 2+ hour wait. They have a video showing how it works: https://youtu.be/_kiP6q8DX5c. The agent I spoke with confirmed that Schedule B is absolutely based on aggregate totals across all accounts, not individual ones, and helped me understand exactly which of my unusual income sources needed to be included.

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Sean Doyle

•8M

It essentially holds your place in line with the IRS so you don't have to stay on the phone yourself. It calls the IRS using their system, navigates the phone tree, waits on hold, and then calls you once it reaches a human agent. Then it connects you directly to that agent who's already on the line. I was skeptical too, but it actually works. The IRS systems are designed to discourage callers by making you wait for hours, and most people give up. This just outsources the waiting part so you can go about your day until an agent is available.

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Luca Romano

•8M

Well I'm literally eating crow (not my tax forms thankfully). I tried Claimyr after posting my skeptical comment and I got through to an IRS agent in 35 minutes after trying unsuccessfully for MONTHS on my own. The agent confirmed that for Schedule B, they absolutely look at the aggregate across all accounts. She also helped me understand some foreign account reporting requirements I'd been confused about. I've been doing my own taxes for 15 years and never knew you could actually get useful help from the IRS because I could never get through before. Pretty amazing to finally talk to a real person.

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NebulaNova

•8M

The interest from I Bonds is only taxable when you redeem the bonds, not as it accrues each year (unless you specifically elect to report it annually, which most people don't). So if you haven't cashed them out, that $800 wouldn't count toward your $1,500 Schedule B threshold. That said, you can elect to report the interest annually rather than at redemption, but it's an active choice you have to make. Most people prefer to defer the taxes until they actually cash out the bonds.

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Aisha Khan

•8M

Yes! This is super important and a lot of people miss it. Even if you're under the $1,500 threshold, you need Schedule B if you have financial interest in or signature authority over a foreign account. That includes accounts where you're not even the owner but just have signing authority. Also, don't forget about FBAR requirements (FinCEN Form 114) if your foreign accounts exceed $10,000 in aggregate at any point during the year. These are separate from tax filing but have serious penalties if missed.

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Jabari-Jo

•5M

Just wanted to add another important detail that I learned when I had to file Schedule B for the first time - you need to list ALL payers of interest and dividends on Schedule B, not just the ones that put you over the threshold. So even if you have 10 different accounts contributing small amounts that together exceed $1,500, you have to list every single payer on the form, including their name, address, and the amount they paid you. It can make for a pretty long form if you have accounts scattered across multiple banks and brokerages. The IRS uses this information for matching purposes - they want to see that what you're reporting matches up with all the 1099-INT and 1099-DIV forms they received about you. Missing even a small payer can trigger a notice later on.

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