U.S. · Tax forms
Schedule B line 1, list name of payer.
Who to list, how to subtract nominee amounts, and where the total goes.
Line 1 is where you list each payer of your taxable interest and the amount, from Forms 1099-INT, 1099-OID or substitute statements. If you received a Form 1099 from a brokerage, list the firm as payer and the total on that form. Tax-exempt interest does not go here. Seller-financed mortgage interest goes first.
Look up a Schedule B line
Result
Schedule B line 1 on the 2025 form
The 2025 form prints this line as: “List name of payer. If any interest is from a seller-financed mortgage and the buyer used the property as a personal residence, see the instructions and list this interest first. Also, show that buyer’s social security number and address.”
| Line | Meaning | What the IRS says |
|---|---|---|
| Line 1 | List name of payer | Each payer and its taxable interest. Brokerage: list the firm and total on the 1099 |
| Line 2 | Add the amounts on line 1 | Total of line 1, after any nominee, accrued interest, OID or premium subtraction |
| Line 3 | Excludable EE and I bond interest | Attach Form 8815 |
| Line 4 | Subtract line 3 from line 2 | Enter on Form 1040 or 1040-SR, line 2b. If over $1,500, complete Part III |
| First on line 1 | Seller-financed mortgage interest | If the buyer used the property as a personal residence; show buyer name, address and SSN |
| Nominee | Interest that belongs to someone else | Report total on line 1; add subtotal and Nominee Distribution; subtract on line 2 |
| Accrued interest | Paid to seller on a bond bought between dates | Identify the amount subtracted as Accrued Interest |
| Tax-exempt | Municipal bond interest | Not on line 1. Total goes on Form 1040 or 1040-SR, line 2a |
What to list on line 1
Report on line 1 all of your taxable interest, generally shown on Forms 1099-INT, 1099-OID or substitute statements. Include interest from series EE, H, HH and I U.S. savings bonds, any accrued market discount that is includible in income, and any gain on a contingent payment debt instrument that is includible as interest. List each payer’s name and amount. You can list more than one payer per entry space if the amount paid next to each name is clear; attach separate statements in the same format if you run out of space, with your name and SSN on them.
Seller-financed mortgages
If you sold your home or other property and the buyer used it as a personal residence, list first any interest the buyer paid you on a mortgage or other seller financing. Show the buyer’s name, address and SSN, and let the buyer know your SSN. The instructions say you may have to pay a $50 penalty if you do not.
Subtracting amounts that are not yours
For interest received as a nominee (in your name but belonging to someone else), report the total on line 1, put a subtotal under your last entry, enter “Nominee Distribution” below it with the amount, and enter the result on line 2. The same pattern, with “Accrued Interest”, “OID Adjustment” or “ABP Adjustment” labels, applies to accrued bond interest, OID and amortizable bond premium. If the payer already netted the premium or acquisition premium, no further reduction is allowed on Schedule B.
Worked example
Elena (made-up) received a Form 1099-INT from her bank showing $1,800, of which $600 belongs to her brother. On line 1 she lists the bank and $1,800, writes a subtotal of $1,800, then “Nominee Distribution $600”. Line 2 is $1,200. With nothing on line 3, line 4 is $1,200, which is under the $1,500 Part III threshold, so Part III is not required for that reason alone.
More Schedule B line pages
Other pages in this set: Schedule B line 3, Schedule B line 8.
Sources
- Instructions for Schedule B (Form 1040) (2025): the line-by-line instructions on this page. Page last reviewed or updated April 30, 2026. Read November 2, 2026.
- Schedule B (Form 1040) 2025: the printed line wording and arithmetic on the form. Read November 2, 2026.
Tax year 2025 edition (returns filed in 2026). Line numbers, dollar limits and wording are those printed in the 2025 form and instructions and change by year. Names in worked examples are made up.
Frequently asked questions
What do I list on Schedule B line 1?
Each payer of your taxable interest and the amount, from Forms 1099-INT, 1099-OID or substitute statements. If a brokerage issued the form, list the firm and the total on the form.
Does tax-exempt interest go on line 1?
No. Tax-exempt interest, such as municipal bond interest, is not reported on line 1; its total goes on Form 1040 or 1040-SR, line 2a.
What if I received interest as a nominee?
Report the total on line 1, show a subtotal, then Nominee Distribution and the amount that belongs to someone else, and enter the result on line 2. You also owe the actual owner a Form 1099-INT unless the owner is your spouse.
How do I report seller-financed mortgage interest?
List it first on line 1 and show the buyer’s name, address and social security number, if the buyer used the property as a personal residence.
When must I complete Part III?
The form says Part III is required if you had over $1,500 of taxable interest or ordinary dividends, had a foreign account, or received a distribution from or were grantor or transferor to a foreign trust.
Not tax advice
This page summarizes IRS instructions, mostly written for the people who prepare the form, and is not tax, legal or financial advice. A CPA or an enrolled agent can confirm what a line means for your return. Everything runs in your browser; nothing you enter is sent anywhere.