Schedule B

Out of Scope:

  • Accrued savings bond interest
  • Bonds sold between interest payment dates not reported by a broker
  • Series EE or I bonds when interest is reported annually
  • Education exclusion for savings bond interest (Form 8815)
  • 1099-DIV Section 1202 gain
  • 1099-DIV cash or noncash liquidation distributions
  • Adjustments needed to a Form 1099-OID or did not receive one but should have
  • Inclusion of child’s interest and dividends (Form 8814)
  • Form 8938 (Foreign assets)

Investable ← Click picture to the left for details of interest and dividend types and their treatment in TaxWise. A short summary of entry procedures for the Schedule B Interest Stmt is below.

Tax Slayer entry:

Federal Section > Interest and Dividends > Interest or Dividend Income


Interest Income:

  • Taxable interest income from Forms 1099-INT or 1099-OID or their equivalents from a broker statement.
  • If from US Savings Bonds or Government obligations, it can be excluded from Colorado income.
    • Interest reported annually (rather than when bonds are cashed in) is  OUT OF SCOPE .
    • Some interest may be excludable from income if for education expenses (Form 8815) but not if filing MFS. Form 8815 is  OUT OF SCOPE   however.
  • Enter interest from Form 1099-OID as regular interest – do not enter in the OID Adjust line!

IRA interest:

  • IRA interest is non-taxable unless it is interest earned on an overpayment to an IRA.

Credit Union dividends:

  • Credit Unions often report interest as “dividends”. They should be entered as regular interest on the Interest Stmt.

Tax Exempt Interest Income:

  • Municipal bonds not taxable to federal.
  • CO municipal bonds are not taxable to the state of Colorado.
  • Municipal bonds from other states are taxable to the state of Colorado. In this case, also add the amount as taxable to the state.

Non-dividend distributions:

  • Not taxable, this is a return of investment cost.
  • Taxpayers use this figure to reduce their basis when they eventually sell the investment.

Dividend Income

  • Brokerage statements may include the percent of income of funds that come from these sources – look for a table as additional info that came with the statement.
  • If from  Government obligations, it can be excluded from Colorado income. Includes Puerto Rico, U .S . Virgin Islands, American Samoa, Guam, the Commonwealth of the Northern Marianas, Wake Island, the Midway Islands, and Johnston Island .

Seller Financed Interest Income:

  • If a 1099-INT is received, it is entered as ordinary interest.

State withholding:

If there is state withholding reported for interest or dividends, see the CO 104 resource page.