Qualified Dividends

[oceanlovin'ea]

Has anyone else noticed that on most of the 1099-Div's this year, there is an amount for regular dividends and the box for qualified dividends is zero or blank.

I know that some of these dividends were qualified last year.

Are these forms not correct this year or did the rules change?

Linda F

[Brad Imsdahl]

Nothing has changed with qualified dividends. Same rules as last year.

[ecb34691]

I've not noticed any difference so far, but just beginning to see more of the returns with INT & DIV's..

[KJ Judd]

All the 1099-DIV I've received have had amounts in the qualified dividend box.

[thomtax]

All but one of my 1099DIV have had the full amount in the qualified div. box. You may just be one of the fortunate/unfortunate ones to have special situations on the investments.

Good luck.
LT

[taxea]

Qualified Dividends

Dividends with no matching qualified dividends are reported as interest. Dividends with qualifed matching are reported as dividends.
taxea

[Ken]

Hawaii

Hey Taxea, I just noticed your address in Hawaii.
I was just over there about a year ago visiting my daughter and grandkids. My son in law was stationed in the army there. You lucky dog, I wish I was sitting on the beach right now.
By the way I met Dog the bounty Hunter while I was walking on the beach one day.

[ChEAr$]

You'd think so since credit unions pay "dividends"

Dividends with no matching qualified dividends are reported as interest. Dividends with qualifed matching are reported as dividends.
taxea

But I notice that many 1099divs I see these days are for money market funds which
pay dividends, and my software takes them in as dividends no questions asked.
just not qualified of course.

[taxea]

Qualified Dividends

I was taught to put them in as interest but, yes, the programs will take them as dividends if put there. taxea

[S T]

Interest vs Dividends

I think Linda is talking about the 1099 DIV from the brokerage houses, or the 1099 DIV from the issuing agent if the stock is not held at a brokerage house.

Linda, I have not seen much difference in the qualifying dividends being reported for 2006.

While credit unions call the earnings "dividends" they are usually reported on 1099 INT and are to be reported as interest along with other bank interest on money market savings, savings, and CD accounts at a financial instituion.

Sandy

[oceanlovin'ea]

Publix stock

This 1099 DIV was from Publix stock. I am sure that in the past it has said the dividends were qualified.

The other ones were on mutual funds of some sort.

It was mostly the Publix stock that surprised me.

Linda F

[RLymanC]

NON-Q-Dividends

Your mutual fund may receive dividends that are non-qualified. For example, the mutual fund may sell shares just 35 days after buying them, but after receiving a dividend. The mutual fund has to hold the shares at least 61 days to have a qualified dividend. Any amount the mutual find receives as a nonqualified dividend get paid to you as a nonqualified dividend.

When a mutaul fund has a short-term capital gain, it pays this amount to the mutual fund shareholders as an ordinary dividend.

Any mutual fund sold less than 61 days will be nonqualified. Hold you mutaul funds at least 61 days to get qualified div.

From: http://www.fairmark.com/