When must Schedule B be filed?

Schedule B must be filed when the taxpayer receives interest from specified sources. This requirement is in place because Schedule B is designed to report interest income and ordinary dividends, specifically including interest from savings accounts, bonds, and loans. If a taxpayer has earned interest income exceeding a certain threshold or has specified types of interest income, they must disclose this information on Schedule B as part of their Form 1040 filing.

In this context, if a taxpayer has no foreign investments, received capital gains, or has only qualified dividends, they may not be required to file Schedule B. This highlights the importance of accurately assessing a taxpayer's income types and understanding the requirements associated with reporting them on the correct forms.