What is OmniNerd?

Welcome! OmniNerd's content is generated by you, the reader. Through voting and moderation we strive to highlight the nerdiest of what's around and provide content that's a little more thought provoking than other sites.

Submit New Content

Voting Booth

I am most afraid of dying?

View Results, All Polls
75 votes, 12 comments
0
Nerd-Its
+ -

RE: A correction

Comment comment by Brandon on 01 August 2007

Perhaps I found my own answer. Per the form 1040, line 8a instructions to which you linked:

Enter your total taxable interest income on line 8a. But you must fill in and attach Schedule B if the total is over $1,500 or any of the other conditions listed at the beginning of the Schedule B instructions (See page B-1) apply to you.

Perhaps it is only when a Schedule B (second page) is required that you have the potential to take advantage of Bush's tax cuts...

In any case, for informational purposes: According to this article on bankrate.com, the conditions for filling out Schedule B include:

  • You sold your home or other property, provided seller financing and the buyer used it as a personal residence.
  • You received interest or dividends as a nominee, that is, the earnings are in your name but they actually belong to someone else.
  • You received a Form 1099 for interest as a purchaser of a bond with accrued interest.
  • You received a Form 1099-INT for tax-exempt interest.
  • You had a foreign account or received a distribution from a foreign account.
You are a viewing a subset of a larger discussion.
View Full Discussion
Star This to Save in Your Profile Favorite
Thread parent sort order:
Highest Voted : Lowest Voted : Oldest : Newest
Thread verbosity:
Expand All : Minimize Replies to Comments
0 Nerd-Its - +
RE: A correction by wyldeling :: NR6

As you said, a Schedule B (instructions) is filled out if your interest exceeds $1,500. However, it is merely an itemized list of all your interest (B - line(s) 1) and dividend (B - line(s) 5) sources, and you total interest (B - line 2) less your excludable interest (B - line 3) is entered in line 8a on the 1040. Line 8a is included in your total income (1040 - line 22), so it is taxed as normal income. In other words, it is not capped at 15%. The 15% cap applies to capital gains from the sale of a capital asset (most property is included, see the Schedule D instructions), and for those you need to fill out a Schedule D (instructions).

Posted 01 August 2007, Hide, Parent, Reply
0 Nerd-Its - +
A broader view by Anonymous :: NR0

Dont forget the interest we all owe on the Government's deficit. Bush needs to collect more tax money. He never could afford those tax cuts - that was only about getting elected.

Posted 01 August 2007, Hide, Parent, Reply