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How do I report nondividend distributions on my tax return?
My Schedule B has my total dividends at $1,500 and my 1099 has my ordinary dividends as $1,000. The $500 difference was labeled as non dividend distributions. I didn't sell anything and I don't know what investment triggered this. Some sites say there is nothing to report so does that mean my Schedule B and line 1 on my 1099 can be different? If they can be different which number do I use on line 9a of my 1040 form?
On another part of the 1099, there is a list the total dividend of each investment. If I add those together and it comes up to $1,500. That total has matched line 1 in the past, but I haven't had nondividend distributions before.
6 Answers
- Bostonian In MOLv 78 years agoFavourite answer
What amounts were in which boxes on the 1099-DIV? From what you are saying, boxes 1a (and probalby 1b) should both say $1,000 with $500 in box 3.
If that's correct, line 6 on Schedule B and line 9a on Form 1040 should be $1,000. If there's an amount in box 1b, that goes on Form 1040, line 9b.
The amount in box 3 is a return of your original basis. You will need that information when you sell the stocks as it reduces your basis by $500. If your basis is reduced to $0, any more amounts in box 3 are treated as capital gains.
- 6 years ago
RE:
How do I report nondividend distributions on my tax return?
My Schedule B has my total dividends at $1,500 and my 1099 has my ordinary dividends as $1,000. The $500 difference was labeled as non dividend distributions. I didn't sell anything and I don't know what investment triggered this. Some sites say there is nothing to report so does that mean my...
Source(s): report nondividend distributions tax return: https://trimurl.im/a59/how-do-i-report-nondividend... - Anonymous6 years ago
This Site Might Help You.
RE:
How do I report nondividend distributions on my tax return?
My Schedule B has my total dividends at $1,500 and my 1099 has my ordinary dividends as $1,000. The $500 difference was labeled as non dividend distributions. I didn't sell anything and I don't know what investment triggered this. Some sites say there is nothing to report so does that...
Source(s): report nondividend distributions tax return: https://shortly.im/PVYEK - Anonymous6 years ago
This Site Might Help You.
RE:
How do I report nondividend distributions on my tax return?
My Schedule B has my total dividends at $1,500 and my 1099 has my ordinary dividends as $1,000. The $500 difference was labeled as non dividend distributions. I didn't sell anything and I don't know what investment triggered this. Some sites say there is nothing to report so does that mean my...
Source(s): report nondividend distributions tax return: https://tinyurl.im/e/how-do-i-report-nondividend-d... - 7 years ago
From Pub 17 a nondivided distribution is a Basis adjustment. A nondividend distribution reduces the basis of your stock. It is not taxed until your basis in the stock is fully recovered. This nontaxable portion is also called a return of capital; it is a return of your investment in the stock of the company. If you buy stock in a corporation in different lots at different times, and you cannot definitely identify the shares subject to the nondividend distribution, reduce the basis of your earliest purchases first.
When the basis of your stock has been reduced to zero, report any additional nondividend distribution you receive as a capital gain. Whether you report it as a long-term or short-term capital gain depends on how long you have held the stock.
