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

Answer 1

The correct answer is B

Step-by-step explanation:

The Schedule B (which is Form 1040), if any of the following conditions are applied:

1. Earned or have taxable interest of $1,500 or the ordinary dividends.

2. Received or collected the interest from the seller who financed mortgaged and the buyer have kept the property as the personal residence.

3. Received or have an accrued interest from bond.

So, In this situation, Robin is the one who earned $1,550 in the corporate bond interest. Therefore, the Robin is required to file the Schedule B as he has earned more than $1,500.