If you neither bought nor sold securities in the tax year, the potential
qualified dividends reported on your Form 1099 - DIV should meet the holding period requirement and qualify for the lower tax rate, unless you hedged the securities.
Not exact matches
interest from municipal bonds as well as distributions from mutual funds that
qualify as exempt interest
dividends; this income is generally not subject to regular federal income taxes; note that Fidelity
reports this information to the IRS, and may be required to
report the information to tax authorities in California among other states; the total amount or a portion of tax - exempt income (
reported as specified private activity bond interest) must be taken into account when computing the federal Alternative Minimum Tax (AMT) applicable to individuals and may be subject to state and local taxes; you are required to
report tax - exempt income on Form 1040, and may be required to
report it on your state tax return as well
Qualified Dividend Income equals the amount
reported to shareholders on Form 1099 - DIV, box 1b.
Qualified Dividend Income equals the amount
reported to shareholders on Form 1099 - DIV, box 1b.
Taxable ordinary income,
qualified dividends, and capital gains distributions are
reported on Form 1099 - DIV.
Qualified dividends are
reported on Form 1099 - DIV in line 1b or column 1b.
Of the $ 1,800
reported as ordinary
dividends for XYZ fund in line or column 1a of Form 1099 - DIV, only $ 900 would be
reported in line or column 1b as a
Qualified Dividend.
To continue with the example above, a
dividend of $ 0.18 per share was paid but only 50 % of that
dividend ($ 0.09 per share) was
reported as a
qualified dividend.
Consider this hypothetical situation in which you have
dividends reported on Form 1099 - DIV as
qualified from shares in XYZ fund.
Form 1099 - DIV:
Reports total ordinary,
qualified, and tax - exempt interest
dividends, total capital gain distributions, unrecaptured Section 1250 gain, federal income tax withheld, foreign tax paid, foreign source income, return of capital (ROC) and any specified private activity bond interest.
Dividends paid from money market accounts, such as deposits in savings banks, credit unions or other financial institutions, do not
qualify and should be
reported as interest income.
Form 1099 - DIV is also used to
report qualified dividends, unrecaptured Section 1250 gain, nondividend distributions (return of capital distributions), federal income tax withheld (backup withholding), foreign tax paid and foreign source income, if applicable to your account, and any specified private activity bond interest.
Reporting Your Gains and Losses The Form 1099 - DIV breaks down the ordinary and
qualified dividends for you for tax purposes.
For example, if Box 1a
reports $ 1,000 but Box 1b
reports $ 700, the $ 700 in
qualified dividends would be taxed at the lower long - term capital gains rate while the remaining $ 300 in ordinary
dividends ($ 1,000 — $ 700 gets you $ 300) is taxed at your income tax rate.
interest from municipal bonds as well as distributions from mutual funds that
qualify as exempt interest
dividends; this income is generally not subject to regular federal income taxes; note that Fidelity
reports this information to the IRS, and may be required to
report the information to tax authorities in California among other states; the total amount or a portion of tax - exempt income (
reported as specified private activity bond interest) must be taken into account when computing the federal Alternative Minimum Tax (AMT) applicable to individuals and may be subject to state and local taxes; you are required to
report tax - exempt income on Form 1040, and may be required to
report it on your state tax return as well
You can deduct this interest on Schedule A if you itemize, up to the amount of investment income (not including capital gains or
dividends that
qualify for the 0, 15, or 20 percent rates) you
report.
Form 1099 - DIV is used to
report ordinary
dividends, total capital gains,
qualified dividends, non-taxable distributions, federal income tax withheld, foreign taxes paid, and foreign source income from investments held by fund companies.
For corporate investors in the fund,
dividend distributions the fund
reports to be from
dividends received from
qualifying domestic corporations will be eligible for the 70 % corporate
dividends - received deduction to the extent they would
qualify if the fund were a regular corporation.