Updated October 18, 2026. Quick answer: Line 8 is the foreign trust question in Part III of Schedule B. It asks whether you received a distribution from, or were the grantor of or a transferor to, a foreign trust. It is a yes or no answer, not an amount, and a yes may mean a separate Form 3520.
Form lines read one part at a time: Form 3520 Part III, Form 3520 Part IV and Form 3520-A.
What line 8 asks for
The form asks “During 2025, did you receive a distribution from, or were you the grantor of, or transferor to, a foreign trust?” If you answer Yes, the form says you may have to file Form 3520. The same trust condition also appears in the rule on who completes Part III: “received a distribution from, or were a grantor of, or a transferor to, a foreign trust.” The foreign accounts question just above it is covered at Schedule B line 7.
Where the number comes from (line 8 is a yes or no answer)
The instructions begin with “If you received a distribution from a foreign trust, you must provide additional information.” They then explain what counts: “For this purpose, a loan of cash or marketable securities is generally considered to be a distribution.” For details on the distribution side they send you to “See the Instructions for Form 3520”. The form is explained on the Form 3520 page. Foreign inheritances and Form 3520 are covered on the foreign inheritance and Form 3520 page.
If you set up or funded a trust, the instructions say “If you were the grantor of, or transferor to, a foreign trust that existed during 2025, you may have to file Form 3520.”
Where it goes next
Line 8 does not feed a total on the schedule. The next step is a separate filing. The instructions say “Don’t attach Form 3520 to Form 1040 or Form 1040-SR.” and “Instead, file it at the address shown in its instructions.”
A second form can fall to the owner. The instructions say “If you were treated as the owner of a foreign trust under the grantor trust rules, you are also responsible for ensuring that the foreign trust files Form 3520-A.” On timing, the instructions say “Form 3520-A is due on March 16, 2026, for a calendar year trust.” Foreign accounts are a separate question on line 7, and Form 8938 is covered on the Form 8938 page. The return this schedule attaches to is explained on the Form 1040 page, and the schedule as a whole is on the Schedule B (Form 1040) page.
Edition and line numbers
This page reads the 2025 Schedule B (Form 1040) and its 2025 instructions, the current files irs.gov served on 2026-10-18. They are byte-identical to the archived copies and they are the files for the tax year 2025 return, filed in 2026. The schedule says “Attach to Form 1040 or 1040-SR.” Schedule B has its own instructions booklet, titled “Instructions for Schedule B” (Form 1040). Check the tax year printed on the schedule you are filling in and use the line numbers on that year’s schedule, because a different year’s schedule can number or word its lines differently.
Common mistakes
- Attaching Form 3520 to the return. The instructions say “Don’t attach Form 3520 to Form 1040 or Form 1040-SR.”
- Treating a loan from a foreign trust as something else. The instructions say “a loan of cash or marketable securities is generally considered to be a distribution.”
- Forgetting the owner’s responsibility for the trust’s own form. The instructions say “you are also responsible for ensuring that the foreign trust files Form 3520-A.”
Related: Schedule B (Form 1040), Form 3520, foreign inheritance and Form 3520, and Form 8938.
Sources
- Instructions for Schedule B (Form 1040), Interest and Ordinary Dividends (2025): https://www.irs.gov/pub/irs-pdf/i1040sb.pdf
- Schedule B (Form 1040), Interest and Ordinary Dividends (2025): https://www.irs.gov/pub/irs-pdf/f1040sb.pdf
Read from the IRS documents linked above on October 18, 2026. General information, not tax advice. Your own facts decide the outcome, and a preparer, the account provider or the IRS is the right place to confirm anything consequential.