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how to report qualified dividends

Posted: Thu Mar 14, 2019 6:15 pm
by HeadTail
(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.

Re: how to report qualified dividends

Posted: Thu Mar 14, 2019 7:16 pm
by smarcus3
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

Re: how to report qualified dividends

Posted: Thu Mar 14, 2019 7:28 pm
by smarcus3
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.

Re: how to report qualified dividends

Posted: Thu Mar 14, 2019 8:40 pm
by krow36
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?

Re: how to report qualified dividends

Posted: Thu Mar 14, 2019 8:50 pm
by smarcus3
Bad example on my part. 1a should be thought of "total" dividends. 1b is just qualified dividends.

Re: how to report qualified dividends

Posted: Thu Mar 14, 2019 9:03 pm
by krow36
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.

Re: how to report qualified dividends

Posted: Thu Mar 14, 2019 9:13 pm
by smarcus3
1099-div

Re: how to report qualified dividends

Posted: Thu Mar 14, 2019 11:00 pm
by krow36
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?

Re: how to report qualified dividends

Posted: Thu Mar 14, 2019 11:01 pm
by smarcus3
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!