Video Transcript

In this section we're going to talk about lines 8a and 8b, 9a and 9b. That's taxable interest, tax exempt interest, ordinary dividends, and qualified dividends. And if you'll notice on here it references schedule 1 for both taxable interest and ordinary dividends. Here's what schedule 1 looks like. And you'll see here part one is to list interest by payer and part two is to list ordinary dividends by payer. Now, you use this form if you have more than $1,500 worth of taxable interest or if you have over $1,500 worth of ordinary dividends. Your taxable interest is going to be reported to you by each payer on a form 1099-INT. Here's what the form 1099-INT looks like, and you'll notice you have in box 1 your interest income. But you also have down here in box 8 tax-exempt interest. And if you go back to the instructions, you'll see line 8b is for tax-exempt interest. Now we're going to talk about line 9a, ordinary dividends and we'll also talk a little bit about line 9b, qualified dividends. And you'll get a form 1099-DIV from each payer, which is similar to the one we just looked at on INT and this in box 1a reports your ordinary dividends, and then in box 1b, reports your qualified dividends.