1099-DIV

"Vic Dura" wrote

Your total dividends were $200.

Ordinary Dividends consist of (1) Qualified Dividends and (2) Non-Qualified Dividends. So Qualified Dividends will always be less than or equal to Ordinary Dividends.

I think the "ordinary" descriptor harkens back to the notion that dividends all used to be taxed at "ordinary income" rates. Since changes to the tax law c. 2003, some dividends have since fallen into a new, "special" subcategory, called "qualified dividends," such that the qualified dividends will be taxed at capital gain tax rates.

$200.

You received a total of $200 dividends. Of that, $100 was qualified.

After the $200 is added to your taxable income, the $100 is used to calculate (adjust) the amount of tax owed on the taxable income using the qualified dividends and capital gains tax worksheet (line 44 of the

You got $200 in divs, of what $100 was qualified.

-- Rich Carreiro snipped-for-privacy@rlcarr.com

Your total dividends were $200. The amount in box 1b is included in

Bob Sandler

On Fri, 4 Apr 2008 16:07:35 EDT, "Elle" wrote Re Re: 1099-DIV:

Thanks to all who replied.

I was trying to reconcile my 1099-DIV with my record of dividends received and suddenly realized that I didn't understand if the Line 1b amount was included in Line 1a.

Thanks clearing that up for me.

Vic

And then there's TDAmeritrade who reports Ordinary Dividends, Qualified Dividends and thenyou must add them together for a total of all Dividends. Duh.

ed

Really? Are brokers allowed to deviate from the standard content of

Oh good grief! Are you kidding? I'm concerned because I remember doing a return for a client having substantial dividends from TD.

So I looked at the 1099Div instructions from IRS, and it clearly says that for qualified dividends, enter the PORTION of those in box 1a (total dividends) that are qualified divs.

I don't know whether or not to be concerned now.

Note to myself. calendar for April 16th; check with client.

ChEAr$, Harlan Lunsford, EA n LA