Is this dividend correctly reported by the mutual fund ?

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math22
Posts: 57
Joined: Wed Jan 13, 2016 8:11 pm
Location: USA

Is this dividend correctly reported by the mutual fund ?

Post by math22 » Sat Dec 16, 2017 3:00 pm

I own FSTVX (fidelity total market) and it is reporting $2K in non-qualified dividends.
90% of my current position in the fund I have held for more than a year. I bought another 10% a month ago.

Should 90% of the 2K dividend be reported as qualified and 10% as non-qualified? Or is it all non-qualified?

Does fidelity take care of this for me or do I need to fix this when filling my taxes?

livesoft
Posts: 62693
Joined: Thu Mar 01, 2007 8:00 pm

Re: Is this dividend correctly reported by the mutual fund ?

Post by livesoft » Sat Dec 16, 2017 3:16 pm

Two things:

1. You might read the package insert that comes with your 1099-DIV when you get it. Here is such a brochure from Vanguard: https://www.vanguard.com/pdf/1099DIV_012016.pdf which has useful information.

2. See this thread from the past couple of hours: viewtopic.php?f=1&t=234750

And I will add a bonus 3rd thing for holders of International funds that pay foreign taxes:

3. The 1099-DIV for international funds will show a larger dividend than was paid into your account. That's because you only got the money leftover after paying foreign taxes. So in taxable accounts, you will have higher income than what you thought you knew about. Plan ahead for that.
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lstone19
Posts: 157
Joined: Fri Nov 03, 2017 3:33 pm

Re: Is this dividend correctly reported by the mutual fund ?

Post by lstone19 » Sun Dec 17, 2017 4:39 pm

Fidelity shows all dividends (excluding LTCG) as non-qualified initially. At the end of the year, the funds will determine how much of the dividends was qualified and Fidelity will adjust things before 1099-DIVs are issued. I too am invested in FSTVX and last year, 94.9% of the December dividend ended up being qualified.

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