How to Do Taxable Dividends
- 1). Wait for the company to issue you a 1099-DIV. These forms either come after the dividend distribution or shortly after the year-end.
- 2). Write the amount from Line 1 on 1099-DIV onto the line on Form 1040 entitled "Ordinary Dividends." Form 1040 is the income tax return most people file during the year. Since dividends are income, you must report them on the front of Form 1040. Each year the line numbers can change, so be sure to check you are putting the result on the right line. For the 2010 return, it was Line 9a.
- 3). Write the amount from Line 2 on 1099-DIV onto the line on Form 1040 entitled "Qualified Dividends."
- 4). List the dividends on Form 1040 Schedule B if you had more than $1,500 of interest and dividends during the year. The form is very self-explanatory. Part 2 is where you put your dividends. You need to list the companies that paid the dividends during the year and the amount of dividends paid. Then you need to add together all your ordinary dividends for the year on Form 1040 Schedule B.
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