U.S. · Tax forms
Schedule B line 8, foreign trust question.
What the Yes box means and which separate forms may follow.
Line 8 asks whether, during 2025, you received a distribution from, or were the grantor of or a transferor to, a foreign trust. A loan of cash or marketable securities is generally a distribution. If Yes, you may have to file Form 3520, which is not attached to your Form 1040.
Look up a Schedule B line
Result
Schedule B line 8 on the 2025 form
The 2025 form prints this line as: “During 2025, did you receive a distribution from, or were you the grantor of, or transferor to, a foreign trust? If “Yes,” you may have to file Form 3520. See instructions.”
| Line | Meaning | What the IRS says |
|---|---|---|
| Part III | When it is required | Over $1,500 of interest or dividends; a foreign account; or a foreign trust distribution, grantor or transferor |
| Line 7a Q1 | Foreign financial account | Financial interest in or signature authority over an account located in a foreign country at any time in 2025 |
| Line 7a Q2 | FinCEN Form 114 (FBAR) | Yes if you are required to file it; aggregate value over $10,000 at any time in 2025 |
| Line 7b | Names of foreign countries | If required to file FinCEN Form 114; attach a statement if more room is needed |
| Line 8 | Foreign trust question | Distribution from, or grantor of or transferor to, a foreign trust during 2025 |
| Distribution | Includes loans | A loan of cash or marketable securities is generally considered a distribution |
| Form 3520 | Reporting form | Do not attach to Form 1040 or 1040-SR; file at the address in its instructions |
| Form 3520-A | Foreign grantor trust owner | Due March 16, 2026 for a calendar year trust |
Reading the question
The yes/no question has three triggers: you received a distribution from a foreign trust, you were the grantor of a foreign trust, or you were a transferor to one. The instructions say that if you received a distribution you must provide additional information, and that if you were the grantor or transferor to a foreign trust that existed during 2025 you may have to file Form 3520. The instructions send you to the Instructions for Form 3520 for details, including how a loan is treated.
Where the forms go
The instructions say not to attach Form 3520 to Form 1040 or 1040-SR: file it at the address shown in its instructions. If you were treated as the owner of a foreign trust under the grantor trust rules, you are also responsible for ensuring the foreign trust files Form 3520-A, due March 16, 2026 for a calendar-year trust.
Line 8 next to lines 7a and 7b
Part III also asks about foreign accounts. Line 7a question 1: check Yes if at any time during 2025 you had a financial interest in or signature authority over a financial account located in a foreign country, even if you are not required to file FinCEN Form 114. Question 2: Yes if you are required to file it; the instructions say a U.S. person must file if the aggregate value of foreign financial accounts exceeds $10,000 at any time during 2025. The instructions also warn of civil penalties for failing to file, and mention Form 8938 as a separate possible requirement.
Worked example
Priya (made-up) borrowed cash from a foreign trust her family set up, with no transfer in. Under the instructions a loan of cash is generally a distribution, so she checks Yes on line 8, files Form 3520 separately (not with her return) and follows its instructions on what to report.
More Schedule B line pages
Other pages in this set: Schedule B line 1, Schedule B line 3.
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 is Schedule B line 8 asking?
Whether during 2025 you received a distribution from, or were the grantor of, or transferor to, a foreign trust.
Is a loan from a foreign trust a distribution?
The instructions say a loan of cash or marketable securities is generally considered a distribution.
Do I attach Form 3520 to my tax return?
No. The instructions say not to attach Form 3520 to Form 1040 or 1040-SR; file it at the address shown in its instructions.
What is Form 3520-A?
The instructions say a person treated as owner of a foreign trust under the grantor trust rules is responsible for making sure the trust files it. It is due March 16, 2026 for a calendar-year trust.
Is line 8 the same as the foreign account question?
No. Foreign accounts are lines 7a and 7b; line 8 is only about foreign trusts. Both are in Part III.
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.