Box 3, 1099-DIV

[S T]

Similar but Different

Just had one, and it was in Box 8 -?? Liquidating - - I think that was it
And it was part of one of the Settlements that we are now receiving. Mine was only $ 8

Take a look at Pub 550 - My tax software gave me the diagnostic

Sandy

[ChEAr$]

The instructions on the back of form 1099-DIV for Box 3 read:

"Shows the part of the distribution that is nontaxable because it is a return of capital..."

If the 1099-DIV indicates $10,000 in Box 1 as "Ordinary Dividends" and $4,000 in Box 3, does this mean

1)the $4,000 is included in $10,000?
2)or that $14,000 was distributed and $10,000 is taxable and $4000 is not?

The $4,000 is not included in ordinary dividends, since they are not.

However this is valuable information, because it serves to reduce basis of stock when it
is eventually sold.

[Snaggletooth]

The instructions on the back of form 1099-DIV for Box 3 read:

"Shows the part of the distribution that is nontaxable because it is a return of capital..."

If the 1099-DIV indicates $10,000 in Box 1 as "Ordinary Dividends" and $4,000 in Box 3, does this mean

1)the $4,000 is included in $10,000?
2)or that $14,000 was distributed and $10,000 is taxable and $4000 is not?