Total Ordinary Dividends, Ordinary Dividends, Qualified Dividends Confusion
Total Ordinary Dividends, Ordinary Dividends, Qualified Dividends Confusion
In 2016, I reported on my 1040 9a Ordinary Dividends an amount form my Fidelity 1099-DIV line 1a Total Ordinary Dividends. I believe Fidelity 1099-DIV line 1a Total Ordinary Dividends includes Qualified Dividends that is reported in the next line as 1b Qualified Dividends. I believe I should have subtracted Qualified Dividends (1b) from the Total Ordinary Dividends (1a) on Fidelity 1099-DIV and reported the result (1a-1b) on Form 1040 9a Ordinary Dividends. Note Form 1040 9a Ordinary Dividends says Ordinary Dividends and not Total Ordinary Dividends. Is my understanding correct? Does Form 1040 Ordinary Dividends mean Total Ordinary Dividends or [Total Ordinary Dividends - Qualified Ordinary Dividends]?
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Re: Total Ordinary Dividends, Ordinary Dividends, Qualified Dividends Confusion
YesCarno wrote: ↑Thu Mar 14, 2019 10:46 amIn 2016, I reported on my 1040 9a Ordinary Dividends an amount form my Fidelity 1099-DIV line 1a Total Ordinary Dividends. I believe Fidelity 1099-DIV line 1a Total Ordinary Dividends includes Qualified Dividends that is reported in the next line as 1b Qualified Dividends.
No, you do not adjust 1099-DIV box 1a (total ordinary dividends). Enter the 1099-DIV boxes 1a and 1b amounts as reported. The tax software will compute the taxes owed on Box 1b amounts at capital gains rates and Box 1a-Box 1b at ordinary income tax rates. You can try doing your 1040/worksheets manually to see how this works.
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Re: Total Ordinary Dividends, Ordinary Dividends, Qualified Dividends Confusion
[/quote]HomeStretch wrote: ↑Thu Mar 14, 2019 11:12 amYesCarno wrote: ↑Thu Mar 14, 2019 10:46 amIn 2016, I reported on my 1040 9a Ordinary Dividends an amount form my Fidelity 1099-DIV line 1a Total Ordinary Dividends. I believe Fidelity 1099-DIV line 1a Total Ordinary Dividends includes Qualified Dividends that is reported in the next line as 1b Qualified Dividends.
No, you do not adjust 1099-DIV box 1a (total ordinary dividends). Enter the 1099-DIV boxes 1a and 1b amounts as reported. The tax software will compute the taxes owed on Box 1b amounts at capital gains rates and Box 1a-Box 1b at ordinary income tax rates. You can try doing your 1040/worksheets manually to see how this works.
Thanks, but I do not use any software. I do all my taxes manually using my own Excel spreadsheet. Again, When I enter IRS 1040 9a Ordinary Dividends, I enter [Total Ordinary Dividends - Qualified Ordinary Dividends] from Fidelity 1099-DIV and NOT [Total Ordinary Dividends]. Is this correct?
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Re: Total Ordinary Dividends, Ordinary Dividends, Qualified Dividends Confusion
Form 1040 Line 3b amount = Form 1099-DIV box 1a amount.
2018 1040 line 3b. 2016 1040 line 9a.
2018 1040 line 3b. 2016 1040 line 9a.
Last edited by HomeStretch on Thu Mar 14, 2019 11:40 am, edited 2 times in total.
Re: Total Ordinary Dividends, Ordinary Dividends, Qualified Dividends Confusion
Please note I do my taxes manually. 2018 1040 Line 3b is Ordinary dividends and Form 1099-DIV box 1a is Total Ordinary Dividends. Are you sure I report Total Ordinary Dividends as Ordinary dividends and not [Total Ordinary Dividends - Qualified Ordinary Dividends] as Ordinary dividends on 2018 1040 Line 3b? Or,HomeStretch wrote: ↑Thu Mar 14, 2019 11:28 amForm 1040 Line 3b amount = Form 1099-DIV box 1a amount.
Form 1040 Line 3b amount = Form 1099-DIV box 1a amount - Form 1099-DIV box 1a amount 1b?
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Re: Total Ordinary Dividends, Ordinary Dividends, Qualified Dividends Confusion
See 2018 IRS Form 1040 instructions page 28 under section “Line 3B”.
Excerpt: “Enter your total ordinary dividends on line 3b. This amount should be shown in box 1a of Form 1099-DIV”.
Excerpt: “Enter your total ordinary dividends on line 3b. This amount should be shown in box 1a of Form 1099-DIV”.
Re: Total Ordinary Dividends, Ordinary Dividends, Qualified Dividends Confusion
No, it is not correct. 2016 Form 1040 Line 9a includes both qualified and non-qualified dividends. But you probably shouldn't be believing strangers on the internet about this sort of thing, so...Carno wrote: ↑Thu Mar 14, 2019 11:17 amThanks, but I do not use any software. I do all my taxes manually using my own Excel spreadsheet. Again, When I enter IRS 1040 9a Ordinary Dividends, I enter [Total Ordinary Dividends - Qualified Ordinary Dividends] from Fidelity 1099-DIV and NOT [Total Ordinary Dividends]. Is this correct?
Let's see ... google "2016 IRS 1040 Instructions filetype:pdf" and ... direct from the mouth of the IRS...
Does your Excel spreadsheet use the Qualified Dividend and Capital Gain Worksheet to calculate the tax?Line 9a Ordinary Dividends
Each payer should send you a Form 1099-DIV. Enter your total ordinary dividends on line 9a. This amount should
be shown in box 1a of Form(s) 1099-DIV.
Re: Total Ordinary Dividends, Ordinary Dividends, Qualified Dividends Confusion
No that is NOT correct. Please read the IRS instructions. This is especially good advice for folks who do not use tax prep software, but is also good advice for folks who do use tax prep software: Please read the IRS instructions.Carno wrote: ↑Thu Mar 14, 2019 11:17 amThanks, but I do not use any software. I do all my taxes manually using my own Excel spreadsheet. Again, When I enter IRS 1040 9a Ordinary Dividends, I enter [Total Ordinary Dividends - Qualified Ordinary Dividends] from Fidelity 1099-DIV and NOT [Total Ordinary Dividends]. Is this correct?
Re: Total Ordinary Dividends, Ordinary Dividends, Qualified Dividends Confusion
Thanks, your are right! There goes another 1040X amended filing (underreported by about $1,300 as a result). You think this amount is large enough to trigger a notice from IRS?cas wrote: ↑Thu Mar 14, 2019 11:54 amNo, it is not correct. 2016 Form 1040 Line 9a includes both qualified and non-qualified dividends. But you probably shouldn't be believing strangers on the internet about this sort of thing, so...Carno wrote: ↑Thu Mar 14, 2019 11:17 amThanks, but I do not use any software. I do all my taxes manually using my own Excel spreadsheet. Again, When I enter IRS 1040 9a Ordinary Dividends, I enter [Total Ordinary Dividends - Qualified Ordinary Dividends] from Fidelity 1099-DIV and NOT [Total Ordinary Dividends]. Is this correct?
Let's see ... google "2016 IRS 1040 Instructions filetype:pdf" and ... direct from the mouth of the IRS...
Does your Excel spreadsheet use the Qualified Dividend and Capital Gain Worksheet to calculate the tax?Line 9a Ordinary Dividends
Each payer should send you a Form 1099-DIV. Enter your total ordinary dividends on line 9a. This amount should
be shown in box 1a of Form(s) 1099-DIV.
As for my Excel spreadsheet, I customize all the rules and inputs, so I am responsible for the outcome (it does Qualified Dividend and Capital Gain Worksheet).
Re: Total Ordinary Dividends, Ordinary Dividends, Qualified Dividends Confusion
Thanks, livesoft! I am sending an 1040X out today.livesoft wrote: ↑Thu Mar 14, 2019 12:06 pmNo that is NOT correct. Please read the IRS instructions. This is especially good advice for folks who do not use tax prep software, but is also good advice for folks who do use tax prep software: Please read the IRS instructions.Carno wrote: ↑Thu Mar 14, 2019 11:17 amThanks, but I do not use any software. I do all my taxes manually using my own Excel spreadsheet. Again, When I enter IRS 1040 9a Ordinary Dividends, I enter [Total Ordinary Dividends - Qualified Ordinary Dividends] from Fidelity 1099-DIV and NOT [Total Ordinary Dividends]. Is this correct?

