I am using Quicken 2008 Deluxe. Entering a stock dividend automatically enters the transaction as _DivInc. How can I differentiate between "Cash Dividend" and "Qualified Dividend" - an important differentiation at tax time?
Hi, JoL
Stevey is right. Even the paying corporation cannot know for sure if it is a "qualified" dividend until their books are closed at year-end.
Especially in times like these, it's entirely possible for a company that paid a dividend from profits in June to learn in December that there actually were no profits - so that dividend might have been a return of capital and not currently taxable. That's only one of many possible scenarios that can cause a dividend to be reclassified "after further review". While not common, it is not unheard-of for a company to reclassify a prior year's reporting after an audit or other retroactive accounting change.
So, all the corporation can do is wait - and all we can do is wait for the "final" 1099.
RC
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