If yearly dividend amounts exceed $1500, which form must be completed and attached to Form 1040?

When yearly dividend amounts exceed $1500, it is necessary to complete Schedule B and attach it to Form 1040. Schedule B is specifically designed for reporting interest and ordinary dividends. This form provides the IRS with a detailed breakdown of these types of income, ensuring that taxpayers properly report and pay taxes on income derived from dividends.

The requirement to attach Schedule B arises because exceeding the $1500 threshold indicates a significant level of dividend income that needs to be properly recorded, and the IRS uses this information to verify the accuracy of the taxpayer's reported income. Schedule B also includes information on foreign accounts and potential foreign income, adding another layer of transparency for the IRS.

In contrast, while other schedules listed serve different purposes—such as Schedule A for itemized deductions, Schedule C for profit or loss from business, and Schedule D for capital gains and losses—they do not specifically cater to reporting dividend income. This highlights why Schedule B is the appropriate choice in this context.