Open topic with navigation
CCH Axcess Tax
Schedule B Questions
Q. Why is the Schedule B not highlighted in Government View?
A. If input is present for the Schedule B to be prepared and it is not highlighted in Government View, seller-financed mortgage interest is present. The Schedule B that prints with the return can be viewed by expanding from the Schedule B in Government View.
Q. How do I enter nominee interest, accrued interest, etc. on Schedule B?
A. The amount specified as nominee interest, accrued interest, etc. must be entered on the Income/Deductions - Interest worksheet, Special Interest section or Consolidated 1099 worksheet, Form 1099-INT Interest Income section with a corresponding code. The corresponding interest entry in Interest income not included in box 3, Interest on U.S. savings bonds and treasury obligations and Tax-Exempt Bond Interest should be gross and not reduced by any special interest such as nominee or OID reductions.
For example, a 1099-INT shows interest of $1,000. However, $500 represents nominee interest. The $1,000 would be entered on the Income/Deductions - Interest worksheet, IRS 1099-INT section, "Interest income not included in box 3" field and the $500 would be entered on the Income/Deductions - Interest worksheet, Special Interest section, "Special interest - amount" field with a code of "4" in the "Special interest - type" field. The federal Schedule B would show the $1,000 on line 1 with a corresponding subtraction of $500 which represents the nominee distribution.
Q. How do I enter nominee dividends on Schedule B?
A. The amount specified as nominee dividends must be entered on the Income/Deductions - Dividends worksheet, IRS 1099-DIV section, "Nondividend distributions" field with the "Nominee dividends" field in the Other section checked or Consolidated 1099 worksheet, Form 1099-DIV Dividend Income section, "Nondividend distributions" field with the "Nominee dividends" field checked. The corresponding dividend entry in the Income/Deductions - Dividends worksheet, IRS 1099-DIV section, "Total ordinary dividends" field or "Total capital gain distr" field, or U.S. Bond Interest section, "Amount or % in box 1a..." field, or Tax Exempt Interest section, "State nontaxable" field or "State taxable" field or Consolidated 1099 worksheet, Form 1099-DIV Dividend Income section, "Total ordinary dividends" field, or "Total capital gain distr" field, or "Amount or % in box 1a" field, or "State nontaxable" field, or "State taxable" field should be gross and not reduced by any amount specified as nominee dividends.
For example, a 1099-DIV shows ordinary dividends of $1,000. However, $500 represents nominee dividends. The $1,000 would be entered on the Income/Deductions - Dividends worksheet, IRS 1099-DIV section, "Total ordinary dividends" field and the $500 would be entered on the Income/Deductions - Dividends worksheet, IRS 1099-DIV section, "Nondividend distributions" field with the "Nominee dividends" field in the Other section checked. The federal Schedule B would show the $1,000 on line 5 with a corresponding subtraction of $500 which represents the nominee distribution.
Q. Where do I enter U.S. bond interest from 1099-DIV on Schedule B?
A. U.S. bond interest from 1099-DIV is entered on the Income/Deductions - Dividends worksheet, U.S. Bond Interest section, "Amount or % in box 1a..." field or Consolidated 1099 worksheet, Form 1099-DIV Dividend Income section, "Amount or % in box 1a" field. U.S. bond interest from 1099-DIV can be entered as either an amount or as a percent of ordinary dividends. Refer to the help screen or the federal Instruction Guide for the Income/Deductions - Dividends worksheet, U.S. Bond Interest section, "Amount or % in box 1a..." field or Consolidated 1099 worksheet, Form 1099-DIV Dividend Income section, "Amount or % in box 1a" field for a detailed explanation on the treatment of ordinary dividends and U.S. bond interest.