how to report qualified dividends

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HeadTail
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how to report qualified dividends

Post by HeadTail » Thu Mar 14, 2019 6:15 pm

(I've deleted the bulk of the initial post since the info was incorrect -- apologies. I left along the second question, which was answered by @smarcus3 and the answer might be of interests to others)

Question #2: Does the amount 1013.26 include the exempted-interests dividend 48.85? This amount is reported on 1040 line 2a, but I don't see any place where I can "subtract" this amount. Right now I use the "qualified dividends & capital gain tax worksheet" to report the qualified dividends, but that worksheet does not mention anything about exempted tax interests.
Last edited by HeadTail on Thu Mar 14, 2019 7:20 pm, edited 1 time in total.

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smarcus3
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Re: how to report qualified dividends

Post by smarcus3 » Thu Mar 14, 2019 7:16 pm

Interest which is exempt for federal or state tax can be adjusted after you enter your 1099 div into your tax prep software. This adjustment should be entered as a line under the subtotal on schedule b section 1.

Qualified dividends is a subset of total dividends. Meaning that if you had $100 of qualified dividends and $10 ordinary non qualified dividends, 1a would be $110 and 1b would be $100
Last edited by smarcus3 on Thu Mar 14, 2019 11:01 pm, edited 1 time in total.
This is my personal opinion. I'm an engineer not a financial advisor.

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smarcus3
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Re: how to report qualified dividends

Post by smarcus3 » Thu Mar 14, 2019 7:28 pm

HeadTail wrote:
Thu Mar 14, 2019 6:15 pm
(I've deleted the bulk of the initial post since the info was incorrect -- apologies. I left along the second question, which was answered by @smarcus3 and the answer might be of interests to others)

Question #2: Does the amount 1013.26 include the exempted-interests dividend 48.85? This amount is reported on 1040 line 2a, but I don't see any place where I can "subtract" this amount. Right now I use the "qualified dividends & capital gain tax worksheet" to report the qualified dividends, but that worksheet does not mention anything about exempted tax interests.
Glad to be of assistance.
This is my personal opinion. I'm an engineer not a financial advisor.

krow36
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Re: how to report qualified dividends

Post by krow36 » Thu Mar 14, 2019 8:40 pm

smarcus3 wrote:
Thu Mar 14, 2019 7:16 pm
Qualified dividends is a subset of total dividends. Meaning that if you had $100 of qualified dividends and $10 ordinary dividends, 1a would be $110 and 1b would be $100
Since ordinary dividends (3b) includes both qualified dividends (3a) and non-qualified dividends, the numbers in the example are confusing. How can the ordinary dividends be smaller number than the qualified dividends?

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smarcus3
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Re: how to report qualified dividends

Post by smarcus3 » Thu Mar 14, 2019 8:50 pm

Bad example on my part. 1a should be thought of "total" dividends. 1b is just qualified dividends.
This is my personal opinion. I'm an engineer not a financial advisor.

krow36
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Re: how to report qualified dividends

Post by krow36 » Thu Mar 14, 2019 9:03 pm

smarcus3 wrote:
Thu Mar 14, 2019 8:50 pm
Bad example on my part. 1a should be thought of "total" dividends. 1b is just qualified dividends.
Are we discussing line 3a and 3b of the 2018 Form 1040? Sorry but I'm not following you. Please explain.

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smarcus3
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Re: how to report qualified dividends

Post by smarcus3 » Thu Mar 14, 2019 9:13 pm

1099-div
This is my personal opinion. I'm an engineer not a financial advisor.

krow36
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Re: how to report qualified dividends

Post by krow36 » Thu Mar 14, 2019 11:00 pm

smarcus3 wrote:
Thu Mar 14, 2019 7:16 pm
Qualified dividends is a subset of total dividends. Meaning that if you had $100 of qualified dividends and $10 ordinary non-qualified dividends, 1a would be $110 and 1b would be $100.
Can I suggest the above addition?

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smarcus3
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Re: how to report qualified dividends

Post by smarcus3 » Thu Mar 14, 2019 11:01 pm

krow36 wrote:
Thu Mar 14, 2019 11:00 pm
smarcus3 wrote:
Thu Mar 14, 2019 7:16 pm
Qualified dividends is a subset of total dividends. Meaning that if you had $100 of qualified dividends and $10 ordinary non-qualified dividends, 1a would be $110 and 1b would be $100.
Can I suggest the above addition?
Sure thing!
This is my personal opinion. I'm an engineer not a financial advisor.

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