When is Schedule B required to be filed?

Schedule B is required to be filed by taxpayers if they have over $1,500 in taxable interest or ordinary dividends during the tax year. This requirement helps the IRS track and verify income derived from investments, ensuring that taxpayers report their earnings accurately. When a taxpayer's interest and dividend income exceeds this threshold, the detailed reporting provided by Schedule B becomes essential to correctly reflect this income on their tax return. It is crucial for accurately reporting the total income and potentially subjecting that income to different tax rates or rules.

The other scenarios—like having dividend income over $1,000 or holding a stock for more than a year—do not trigger this requirement. Additionally, simply having multiple investment accounts does not necessitate filing Schedule B unless the income thresholds regarding interest or ordinary dividends are met. Thus, the correct condition for filing Schedule B is the specified income limit concerning interest and dividends.