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2008 Tax Return

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2008 Tax Return

2008 tax return 8. 2008 tax return   Dividends and Other Distributions Table of Contents Reminder Introduction Useful Items - You may want to see: General InformationDividends not reported on Form 1099-DIV. 2008 tax return Reporting tax withheld. 2008 tax return Nominees. 2008 tax return Ordinary DividendsQualified Dividends Dividends Used to Buy More Stock Money Market Funds Capital Gain DistributionsBasis adjustment. 2008 tax return Nondividend DistributionsLiquidating Distributions Distributions of Stock and Stock Rights Other DistributionsInformation reporting requirement. 2008 tax return Alternative minimum tax treatment. 2008 tax return How To Report Dividend IncomeInvestment interest deducted. 2008 tax return Reminder Foreign-source income. 2008 tax return  If you are a U. 2008 tax return S. 2008 tax return citizen with dividend income from sources outside the United States (foreign-source income), you must report that income on your tax return unless it is exempt by U. 2008 tax return S. 2008 tax return law. 2008 tax return This is true whether you reside inside or outside the United States and whether or not you receive a Form 1099 from the foreign payer. 2008 tax return Introduction This chapter discusses the tax treatment of: Ordinary dividends, Capital gain distributions, Nondividend distributions, and Other distributions you may receive from a corporation or a mutual fund. 2008 tax return This chapter also explains how to report dividend income on your tax return. 2008 tax return Dividends are distributions of money, stock, or other property paid to you by a corporation or by a mutual fund. 2008 tax return You also may receive dividends through a partnership, an estate, a trust, or an association that is taxed as a corporation. 2008 tax return However, some amounts you receive that are called dividends are actually interest income. 2008 tax return (See Dividends that are actually interest under Taxable Interest in chapter 7. 2008 tax return ) Most distributions are paid in cash (or check). 2008 tax return However, distributions can consist of more stock, stock rights, other property, or services. 2008 tax return Useful Items - You may want to see: Publication 514 Foreign Tax Credit for Individuals 550 Investment Income and Expenses Form (and Instructions) Schedule B (Form 1040A or 1040) Interest and Ordinary Dividends General Information This section discusses general rules for dividend income. 2008 tax return Tax on unearned income of certain children. 2008 tax return   Part of a child's 2013 unearned income may be taxed at the parent's tax rate. 2008 tax return If it is, Form 8615, Tax for Certain Children Who Have Unearned Income, must be completed and attached to the child's tax return. 2008 tax return If not, Form 8615 is not required and the child's income is taxed at his or her own tax rate. 2008 tax return    Some parents can choose to include the child's interest and dividends on the parent's return if certain requirements are met. 2008 tax return Use Form 8814, Parents' Election To Report Child's Interest and Dividends, for this purpose. 2008 tax return   For more information about the tax on unearned income of children and the parents' election, see chapter 31. 2008 tax return Beneficiary of an estate or trust. 2008 tax return    Dividends and other distributions you receive as a beneficiary of an estate or trust are generally taxable income. 2008 tax return You should receive a Schedule K-1 (Form 1041), Beneficiary's Share of Income, Deductions, Credits, etc. 2008 tax return , from the fiduciary. 2008 tax return Your copy of Schedule K-1 (Form 1041) and its instructions will tell you where to report the income on your Form 1040. 2008 tax return Social security number (SSN) or individual taxpayer identification number (ITIN). 2008 tax return    You must give your SSN or ITIN to any person required by federal tax law to make a return, statement, or other document that relates to you. 2008 tax return This includes payers of dividends. 2008 tax return If you do not give your SSN or ITIN to the payer of dividends, you may have to pay a penalty. 2008 tax return For more information on SSNs and ITINs, see Social Security Number (SSN) in chapter 1. 2008 tax return Backup withholding. 2008 tax return   Your dividend income is generally not subject to regular withholding. 2008 tax return However, it may be subject to backup withholding to ensure that income tax is collected on the income. 2008 tax return Under backup withholding, the payer of dividends must withhold, as income tax, on the amount you are paid, applying the appropriate withholding rate. 2008 tax return   Backup withholding may also be required if the IRS has determined that you underreported your interest or dividend income. 2008 tax return For more information, see Backup Withholding in chapter 4. 2008 tax return Stock certificate in two or more names. 2008 tax return   If two or more persons hold stock as joint tenants, tenants by the entirety, or tenants in common, each person's share of any dividends from the stock is determined by local law. 2008 tax return Form 1099-DIV. 2008 tax return   Most corporations and mutual funds use Form 1099-DIV, Dividends and Distributions, to show you the distributions you received from them during the year. 2008 tax return Keep this form with your records. 2008 tax return You do not have to attach it to your tax return. 2008 tax return Dividends not reported on Form 1099-DIV. 2008 tax return   Even if you do not receive Form 1099-DIV, you must still report all your taxable dividend income. 2008 tax return For example, you may receive distributive shares of dividends from partnerships or S corporations. 2008 tax return These dividends are reported to you on Schedule K-1 (Form 1065), Partner's Share of Income, Deductions, Credits, etc. 2008 tax return , and Schedule K-1 (Form 1120S), Shareholder's Share of Income, Deductions, Credits, etc. 2008 tax return Reporting tax withheld. 2008 tax return   If tax is withheld from your dividend income, the payer must give you a Form 1099-DIV that indicates the amount withheld. 2008 tax return Nominees. 2008 tax return   If someone receives distributions as a nominee for you, that person should give you a Form 1099-DIV, which will show distributions received on your behalf. 2008 tax return Form 1099-MISC. 2008 tax return   Certain substitute payments in lieu of dividends or tax-exempt interest received by a broker on your behalf must be reported to you on Form 1099-MISC, Miscellaneous Income, or a similar statement. 2008 tax return See Reporting Substitute Payments under Short Sales in chapter 4 of Publication 550 for more information about reporting these payments. 2008 tax return Incorrect amount shown on a Form 1099. 2008 tax return   If you receive a Form 1099 that shows an incorrect amount (or other incorrect information), you should ask the issuer for a corrected form. 2008 tax return The new Form 1099 you receive will be marked “Corrected. 2008 tax return ” Dividends on stock sold. 2008 tax return   If stock is sold, exchanged, or otherwise disposed of after a dividend is declared but before it is paid, the owner of record (usually the payee shown on the dividend check) must include the dividend in income. 2008 tax return Dividends received in January. 2008 tax return   If a mutual fund (or other regulated investment company) or real estate investment trust (REIT) declares a dividend (including any exempt-interest dividend or capital gain distribution) in October, November, or December, payable to shareholders of record on a date in one of those months but actually pays the dividend during January of the next calendar year, you are considered to have received the dividend on December 31. 2008 tax return You report the dividend in the year it was declared. 2008 tax return Ordinary Dividends Ordinary (taxable) dividends are the most common type of distribution from a corporation or a mutual fund. 2008 tax return They are paid out of earnings and profits and are ordinary income to you. 2008 tax return This means they are not capital gains. 2008 tax return You can assume that any dividend you receive on common or preferred stock is an ordinary dividend unless the paying corporation or mutual fund tells you otherwise. 2008 tax return Ordinary dividends will be shown in box 1a of the Form 1099-DIV you receive. 2008 tax return Qualified Dividends Qualified dividends are the ordinary dividends subject to the same 0%, 15%, or 20% maximum tax rate that applies to net capital gain. 2008 tax return They should be shown in box 1b of the Form 1099-DIV you receive. 2008 tax return The maximum rate of tax on qualified dividends is: 0% on any amount that otherwise would be taxed at a 10% or 15% rate. 2008 tax return 15% on any amount that otherwise would be taxed at rates greater than 15% but less than 39. 2008 tax return 6%. 2008 tax return 20% on any amount that otherwise would be taxed at a 39. 2008 tax return 6% rate. 2008 tax return To qualify for the maximum rate, all of the following requirements must be met. 2008 tax return The dividends must have been paid by a U. 2008 tax return S. 2008 tax return corporation or a qualified foreign corporation. 2008 tax return (See Qualified foreign corporation , later. 2008 tax return ) The dividends are not of the type listed later under Dividends that are not qualified dividends . 2008 tax return You meet the holding period (discussed next). 2008 tax return Holding period. 2008 tax return   You must have held the stock for more than 60 days during the 121-day period that begins 60 days before the ex-dividend date. 2008 tax return The ex-dividend date is the first date following the declaration of a dividend on which the buyer of a stock is not entitled to receive the next dividend payment. 2008 tax return Instead, the seller will get the dividend. 2008 tax return   When counting the number of days you held the stock, include the day you disposed of the stock, but not the day you acquired it. 2008 tax return See the examples later. 2008 tax return Exception for preferred stock. 2008 tax return   In the case of preferred stock, you must have held the stock more than 90 days during the 181-day period that begins 90 days before the ex-dividend date if the dividends are due to periods totaling more than 366 days. 2008 tax return If the preferred dividends are due to periods totaling less than 367 days, the holding period in the previous paragraph applies. 2008 tax return Example 1. 2008 tax return You bought 5,000 shares of XYZ Corp. 2008 tax return common stock on July 9, 2013. 2008 tax return XYZ Corp. 2008 tax return paid a cash dividend of 10 cents per share. 2008 tax return The ex-dividend date was July 16, 2013. 2008 tax return Your Form 1099-DIV from XYZ Corp. 2008 tax return shows $500 in box 1a (ordinary dividends) and in box 1b (qualified dividends). 2008 tax return However, you sold the 5,000 shares on August 12, 2013. 2008 tax return You held your shares of XYZ Corp. 2008 tax return for only 34 days of the 121-day period (from July 10, 2013, through August 12, 2013). 2008 tax return The 121-day period began on May 17, 2013 (60 days before the ex-dividend date), and ended on September 14, 2013. 2008 tax return You have no qualified dividends from XYZ Corp. 2008 tax return because you held the XYZ stock for less than 61 days. 2008 tax return Example 2. 2008 tax return Assume the same facts as in Example 1 except that you bought the stock on July 15, 2013 (the day before the ex-dividend date), and you sold the stock on September 16, 2013. 2008 tax return You held the stock for 63 days (from July 16, 2013, through September 16, 2013). 2008 tax return The $500 of qualified dividends shown in box 1b of your Form 1099-DIV are all qualified dividends because you held the stock for 61 days of the 121-day period (from July 16, 2013, through September 14, 2013). 2008 tax return Example 3. 2008 tax return You bought 10,000 shares of ABC Mutual Fund common stock on July 9, 2013. 2008 tax return ABC Mutual Fund paid a cash dividend of 10 cents a share. 2008 tax return The ex-dividend date was July 16, 2013. 2008 tax return The ABC Mutual Fund advises you that the portion of the dividend eligible to be treated as qualified dividends equals 2 cents per share. 2008 tax return Your Form 1099-DIV from ABC Mutual Fund shows total ordinary dividends of $1,000 and qualified dividends of $200. 2008 tax return However, you sold the 10,000 shares on August 12, 2013. 2008 tax return You have no qualified dividends from ABC Mutual Fund because you held the ABC Mutual Fund stock for less than 61 days. 2008 tax return Holding period reduced where risk of loss is diminished. 2008 tax return   When determining whether you met the minimum holding period discussed earlier, you cannot count any day during which you meet any of the following conditions. 2008 tax return You had an option to sell, were under a contractual obligation to sell, or had made (and not closed) a short sale of substantially identical stock or securities. 2008 tax return You were grantor (writer) of an option to buy substantially identical stock or securities. 2008 tax return Your risk of loss is diminished by holding one or more other positions in substantially similar or related property. 2008 tax return   For information about how to apply condition (3), see Regulations section 1. 2008 tax return 246-5. 2008 tax return Qualified foreign corporation. 2008 tax return   A foreign corporation is a qualified foreign corporation if it meets any of the following conditions. 2008 tax return The corporation is incorporated in a U. 2008 tax return S. 2008 tax return possession. 2008 tax return The corporation is eligible for the benefits of a comprehensive income tax treaty with the United States that the Treasury Department determines is satisfactory for this purpose and that includes an exchange of information program. 2008 tax return For a list of those treaties, see Table 8-1. 2008 tax return The corporation does not meet (1) or (2) above, but the stock for which the dividend is paid is readily tradable on an established securities market in the United States. 2008 tax return See Readily tradable stock , later. 2008 tax return Exception. 2008 tax return   A corporation is not a qualified foreign corporation if it is a passive foreign investment company during its tax year in which the dividends are paid or during its previous tax year. 2008 tax return Readily tradable stock. 2008 tax return   Any stock (such as common, ordinary, or preferred) or an American depositary receipt in respect of that stock is considered to satisfy requirement (3) under Qualified foreign corporation , if it is listed on a national securities exchange that is registered under section 6 of the Securities Exchange Act of 1934 or on the Nasdaq Stock Market. 2008 tax return For a list of the exchanges that meet these requirements, see www. 2008 tax return sec. 2008 tax return gov/divisions/marketreg/mrexchanges. 2008 tax return shtml. 2008 tax return Dividends that are not qualified dividends. 2008 tax return   The following dividends are not qualified dividends. 2008 tax return They are not qualified dividends even if they are shown in box 1b of Form 1099-DIV. 2008 tax return Capital gain distributions. 2008 tax return Dividends paid on deposits with mutual savings banks, cooperative banks, credit unions, U. 2008 tax return S. 2008 tax return building and loan associations, U. 2008 tax return S. 2008 tax return savings and loan associations, federal savings and loan associations, and similar financial institutions. 2008 tax return (Report these amounts as interest income. 2008 tax return ) Dividends from a corporation that is a tax-exempt organization or farmer's cooperative during the corporation's tax year in which the dividends were paid or during the corporation's previous tax year. 2008 tax return Dividends paid by a corporation on employer securities held on the date of record by an employee stock ownership plan (ESOP) maintained by that corporation. 2008 tax return Dividends on any share of stock to the extent you are obligated (whether under a short sale or otherwise) to make related payments for positions in substantially similar or related property. 2008 tax return Payments in lieu of dividends, but only if you know or have reason to know the payments are not qualified dividends. 2008 tax return Payments shown in Form 1099-DIV, box 1b, from a foreign corporation to the extent you know or have reason to know the payments are not qualified dividends. 2008 tax return Table 8-1. 2008 tax return Income Tax Treaties Income tax treaties the United States has with the following countries satisfy requirement (2) under Qualified foreign corporation. 2008 tax return Australia Indonesia Romania Austria Ireland Russian Bangladesh Israel Federation Barbados Italy Slovak Belgium Jamaica Republic Bulgaria Japan Slovenia Canada Kazakhstan South Africa China Korea Spain Cyprus Latvia Sri Lanka Czech Lithuania Sweden Republic Luxembourg Switzerland Denmark Malta Thailand Egypt Mexico Trinidad and Estonia Morocco Tobago Finland Netherlands Tunisia France New Zealand Turkey Germany Norway Ukraine Greece Pakistan United Hungary Philippines Kingdom Iceland Poland Venezuela India Portugal     Dividends Used to Buy More Stock The corporation in which you own stock may have a dividend reinvestment plan. 2008 tax return This plan lets you choose to use your dividends to buy (through an agent) more shares of stock in the corporation instead of receiving the dividends in cash. 2008 tax return Most mutual funds also permit shareholders to automatically reinvest distributions in more shares in the fund, instead of receiving cash. 2008 tax return If you use your dividends to buy more stock at a price equal to its fair market value, you still must report the dividends as income. 2008 tax return If you are a member of a dividend reinvestment plan that lets you buy more stock at a price less than its fair market value, you must report as dividend income the fair market value of the additional stock on the dividend payment date. 2008 tax return You also must report as dividend income any service charge subtracted from your cash dividends before the dividends are used to buy the additional stock. 2008 tax return But you may be able to deduct the service charge. 2008 tax return See chapter 28 for more information about deducting expenses of producing income. 2008 tax return In some dividend reinvestment plans, you can invest more cash to buy shares of stock at a price less than fair market value. 2008 tax return If you choose to do this, you must report as dividend income the difference between the cash you invest and the fair market value of the stock you buy. 2008 tax return When figuring this amount, use the fair market value of the stock on the dividend payment date. 2008 tax return Money Market Funds Report amounts you receive from money market funds as dividend income. 2008 tax return Money market funds are a type of mutual fund and should not be confused with bank money market accounts that pay interest. 2008 tax return Capital Gain Distributions Capital gain distributions (also called capital gain dividends) are paid to you or credited to your account by mutual funds (or other regulated investment companies) and real estate investment trusts (REITs). 2008 tax return They will be shown in box 2a of the Form 1099-DIV you receive from the mutual fund or REIT. 2008 tax return Report capital gain distributions as long-term capital gains, regardless of how long you owned your shares in the mutual fund or REIT. 2008 tax return Undistributed capital gains of mutual funds and REITs. 2008 tax return    Some mutual funds and REITs keep their long-term capital gains and pay tax on them. 2008 tax return You must treat your share of these gains as distributions, even though you did not actually receive them. 2008 tax return However, they are not included on Form 1099-DIV. 2008 tax return Instead, they are reported to you in box 1a of Form 2439. 2008 tax return   Report undistributed capital gains (box 1a of Form 2439) as long-term capital gains on Schedule D (Form 1040), column (h), line 11. 2008 tax return   The tax paid on these gains by the mutual fund or REIT is shown in box 2 of Form 2439. 2008 tax return You take credit for this tax by including it on Form 1040, line 71, and checking box a on that line. 2008 tax return Attach Copy B of Form 2439 to your return, and keep Copy C for your records. 2008 tax return Basis adjustment. 2008 tax return   Increase your basis in your mutual fund, or your interest in a REIT, by the difference between the gain you report and the credit you claim for the tax paid. 2008 tax return Additional information. 2008 tax return   For more information on the treatment of distributions from mutual funds, see Publication 550. 2008 tax return Nondividend Distributions A nondividend distribution is a distribution that is not paid out of the earnings and profits of a corporation or a mutual fund. 2008 tax return You should receive a Form 1099-DIV or other statement showing the nondividend distribution. 2008 tax return On Form 1099-DIV, a nondividend distribution will be shown in box 3. 2008 tax return If you do not receive such a statement, you report the distribution as an ordinary dividend. 2008 tax return Basis adjustment. 2008 tax return   A nondividend distribution reduces the basis of your stock. 2008 tax return It is not taxed until your basis in the stock is fully recovered. 2008 tax return This nontaxable portion is also called a return of capital; it is a return of your investment in the stock of the company. 2008 tax return 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. 2008 tax return   When the basis of your stock has been reduced to zero, report any additional nondividend distribution you receive as a capital gain. 2008 tax return Whether you report it as a long-term or short-term capital gain depends on how long you have held the stock. 2008 tax return See Holding Period in chapter 14. 2008 tax return Example. 2008 tax return You bought stock in 2000 for $100. 2008 tax return In 2003, you received a nondividend distribution of $80. 2008 tax return You did not include this amount in your income, but you reduced the basis of your stock to $20. 2008 tax return You received a nondividend distribution of $30 in 2013. 2008 tax return The first $20 of this amount reduced your basis to zero. 2008 tax return You report the other $10 as a long-term capital gain for 2013. 2008 tax return You must report as a long-term capital gain any nondividend distribution you receive on this stock in later years. 2008 tax return Liquidating Distributions Liquidating distributions, sometimes called liquidating dividends, are distributions you receive during a partial or complete liquidation of a corporation. 2008 tax return These distributions are, at least in part, one form of a return of capital. 2008 tax return They may be paid in one or more installments. 2008 tax return You will receive Form 1099-DIV from the corporation showing you the amount of the liquidating distribution in box 8 or 9. 2008 tax return For more information on liquidating distributions, see chapter 1 of Publication 550. 2008 tax return Distributions of Stock and Stock Rights Distributions by a corporation of its own stock are commonly known as stock dividends. 2008 tax return Stock rights (also known as “stock options”) are distributions by a corporation of rights to acquire the corporation's stock. 2008 tax return Generally, stock dividends and stock rights are not taxable to you, and you do not report them on your return. 2008 tax return Taxable stock dividends and stock rights. 2008 tax return   Distributions of stock dividends and stock rights are taxable to you if any of the following apply. 2008 tax return You or any other shareholder have the choice to receive cash or other property instead of stock or stock rights. 2008 tax return The distribution gives cash or other property to some shareholders and an increase in the percentage interest in the corporation's assets or earnings and profits to other shareholders. 2008 tax return The distribution is in convertible preferred stock and has the same result as in (2). 2008 tax return The distribution gives preferred stock to some common stock shareholders and common stock to other common stock shareholders. 2008 tax return The distribution is on preferred stock. 2008 tax return (The distribution, however, is not taxable if it is an increase in the conversion ratio of convertible preferred stock made solely to take into account a stock dividend, stock split, or similar event that would otherwise result in reducing the conversion right. 2008 tax return )   The term “stock” includes rights to acquire stock, and the term “shareholder” includes a holder of rights or of convertible securities. 2008 tax return If you receive taxable stock dividends or stock rights, include their fair market value at the time of distribution in your income. 2008 tax return Preferred stock redeemable at a premium. 2008 tax return   If you hold preferred stock having a redemption price higher than its issue price, the difference (the redemption premium) generally is taxable as a constructive distribution of additional stock on the preferred stock. 2008 tax return For more information, see chapter 1 of Publication 550. 2008 tax return Basis. 2008 tax return   Your basis in stock or stock rights received in a taxable distribution is their fair market value when distributed. 2008 tax return If you receive stock or stock rights that are not taxable to you, see Stocks and Bonds under Basis of Investment Property in chapter 4 of Publication 550 for information on how to figure their basis. 2008 tax return Fractional shares. 2008 tax return    You may not own enough stock in a corporation to receive a full share of stock if the corporation declares a stock dividend. 2008 tax return However, with the approval of the shareholders, the corporation may set up a plan in which fractional shares are not issued but instead are sold, and the cash proceeds are given to the shareholders. 2008 tax return Any cash you receive for fractional shares under such a plan is treated as an amount realized on the sale of the fractional shares. 2008 tax return Report this transaction on Form 8949, Sales and Other Dispositions of Capital Assets. 2008 tax return Enter your gain or loss, the difference between the cash you receive and the basis of the fractional shares sold, in column (h) of Schedule D (Form 1040) in Part I or Part II, whichever is appropriate. 2008 tax return    Report these transactions on Form 8949 with the correct box checked. 2008 tax return   For more information on Form 8949 and Schedule D (Form 1040), see chapter 4 of Publication 550. 2008 tax return Also see the Instructions for Form 8949 and the Instructions for Schedule D (Form 1040). 2008 tax return Example. 2008 tax return You own one share of common stock that you bought on January 3, 2004, for $100. 2008 tax return The corporation declared a common stock dividend of 5% on June 29, 2013. 2008 tax return The fair market value of the stock at the time the stock dividend was declared was $200. 2008 tax return You were paid $10 for the fractional-share stock dividend under a plan described in the discussion above. 2008 tax return You figure your gain or loss as follows: Fair market value of old stock $200. 2008 tax return 00 Fair market value of stock dividend (cash received) +10. 2008 tax return 00 Fair market value of old stock and stock dividend $210. 2008 tax return 00 Basis (cost) of old stock after the stock dividend (($200 ÷ $210) × $100) $95. 2008 tax return 24 Basis (cost) of stock dividend (($10 ÷ $210) × $100) + 4. 2008 tax return 76 Total $100. 2008 tax return 00 Cash received $10. 2008 tax return 00 Basis (cost) of stock dividend − 4. 2008 tax return 76 Gain $5. 2008 tax return 24 Because you had held the share of stock for more than 1 year at the time the stock dividend was declared, your gain on the stock dividend is a long-term capital gain. 2008 tax return Scrip dividends. 2008 tax return   A corporation that declares a stock dividend may issue you a scrip certificate that entitles you to a fractional share. 2008 tax return The certificate is generally nontaxable when you receive it. 2008 tax return If you choose to have the corporation sell the certificate for you and give you the proceeds, your gain or loss is the difference between the proceeds and the portion of your basis in the corporation's stock allocated to the certificate. 2008 tax return   However, if you receive a scrip certificate that you can choose to redeem for cash instead of stock, the certificate is taxable when you receive it. 2008 tax return You must include its fair market value in income on the date you receive it. 2008 tax return Other Distributions You may receive any of the following distributions during the year. 2008 tax return Exempt-interest dividends. 2008 tax return   Exempt-interest dividends you receive from a mutual fund or other regulated investment company, including those received from a qualified fund of funds in any tax year beginning after December 22, 2010, are not included in your taxable income. 2008 tax return Exempt-interest dividends should be shown in box 10 of Form 1099-DIV. 2008 tax return Information reporting requirement. 2008 tax return   Although exempt-interest dividends are not taxable, you must show them on your tax return if you have to file a return. 2008 tax return This is an information reporting requirement and does not change the exempt-interest dividends to taxable income. 2008 tax return Alternative minimum tax treatment. 2008 tax return   Exempt-interest dividends paid from specified private activity bonds may be subject to the alternative minimum tax. 2008 tax return See Alternative Minimum Tax (AMT) in chapter 30 for more information. 2008 tax return Dividends on insurance policies. 2008 tax return    Insurance policy dividends the insurer keeps and uses to pay your premiums are not taxable. 2008 tax return However, you must report as taxable interest income the interest that is paid or credited on dividends left with the insurance company. 2008 tax return    If dividends on an insurance contract (other than a modified endowment contract) are distributed to you, they are a partial return of the premiums you paid. 2008 tax return Do not include them in your gross income until they are more than the total of all net premiums you paid for the contract. 2008 tax return Report any taxable distributions on insurance policies on Form 1040, line 21. 2008 tax return Dividends on veterans' insurance. 2008 tax return   Dividends you receive on veterans' insurance policies are not taxable. 2008 tax return In addition, interest on dividends left with the Department of Veterans Affairs is not taxable. 2008 tax return Patronage dividends. 2008 tax return   Generally, patronage dividends you receive in money from a cooperative organization are included in your income. 2008 tax return   Do not include in your income patronage dividends you receive on: Property bought for your personal use, or Capital assets or depreciable property bought for use in your business. 2008 tax return But you must reduce the basis (cost) of the items bought. 2008 tax return If the dividend is more than the adjusted basis of the assets, you must report the excess as income. 2008 tax return   These rules are the same whether the cooperative paying the dividend is a taxable or tax-exempt cooperative. 2008 tax return Alaska Permanent Fund dividends. 2008 tax return    Do not report these amounts as dividends. 2008 tax return Instead, report these amounts on Form 1040, line 21; Form 1040A, line 13; or Form 1040EZ, line 3. 2008 tax return How To Report Dividend Income Generally, you can use either Form 1040 or Form 1040A to report your dividend income. 2008 tax return Report the total of your ordinary dividends on line 9a of Form 1040 or Form 1040A. 2008 tax return Report qualified dividends on line 9b of Form 1040 or Form 1040A. 2008 tax return If you receive capital gain distributions, you may be able to use Form 1040A or you may have to use Form 1040. 2008 tax return See Exceptions to filing Form 8949 and Schedule D (Form 1040) in chapter 16. 2008 tax return If you receive nondividend distributions required to be reported as capital gains, you must use Form 1040. 2008 tax return You cannot use Form 1040EZ if you receive any dividend income. 2008 tax return Form 1099-DIV. 2008 tax return   If you owned stock on which you received $10 or more in dividends and other distributions, you should receive a Form 1099-DIV. 2008 tax return Even if you do not receive Form 1099-DIV, you must report all your dividend income. 2008 tax return   See Form 1099-DIV for more information on how to report dividend income. 2008 tax return Form 1040A or 1040. 2008 tax return    You must complete Schedule B (Form 1040A or 1040), Part II, and attach it to your Form 1040A or 1040, if: Your ordinary dividends (Form 1099-DIV, box 1a) are more than $1,500, or You received, as a nominee, dividends that actually belong to someone else. 2008 tax return If your ordinary dividends are more than $1,500, you must also complete Schedule B (Form 1040A or 1040), Part III. 2008 tax return   List on Schedule B (Form 1040A or 1040), Part II, line 5, each payer's name and the ordinary dividends you received. 2008 tax return If your securities are held by a brokerage firm (in “street name”), list the name of the brokerage firm shown on Form 1099-DIV as the payer. 2008 tax return If your stock is held by a nominee who is the owner of record, and the nominee credited or paid you dividends on the stock, show the name of the nominee and the dividends you received or for which you were credited. 2008 tax return   Enter on line 6 the total of the amounts listed on line 5. 2008 tax return Also enter this total on line 9a of Form 1040A or 1040. 2008 tax return Qualified dividends. 2008 tax return   Report qualified dividends (Form 1099-DIV, box 1b) on line 9b of Form 1040 or Form 1040A. 2008 tax return The amount in box 1b is already included in box 1a. 2008 tax return Do not add the amount in box 1b to, or substract it from, the amount in box 1a. 2008 tax return   Do not include any of the following on line 9b. 2008 tax return Qualified dividends you received as a nominee. 2008 tax return See Nominees under How to Report Dividend Income in chapter 1 of Publication 550. 2008 tax return Dividends on stock for which you did not meet the holding period. 2008 tax return See Holding period , earlier under Qualified Dividends. 2008 tax return Dividends on any share of stock to the extent you are obligated (whether under a short sale or otherwise) to make related payments for positions in substantially similar or related property. 2008 tax return Payments in lieu of dividends, but only if you know or have reason to know the payments are not qualified dividends. 2008 tax return Payments shown in Form 1099-DIV, box 1b, from a foreign corporation to the extent you know or have reason to know the payments are not qualified dividends. 2008 tax return   If you have qualified dividends, you must figure your tax by completing the Qualified Dividends and Capital Gain Tax Worksheet in the Form 1040 or 1040A instructions or the Schedule D Tax Worksheet in the Schedule D (Form 1040) instructions, whichever applies. 2008 tax return Enter qualified dividends on line 2 of the worksheet. 2008 tax return Investment interest deducted. 2008 tax return   If you claim a deduction for investment interest, you may have to reduce the amount of your qualified dividends that are eligible for the 0%, 15%, or 20% tax rate. 2008 tax return Reduce it by the qualified dividends you choose to include in investment income when figuring the limit on your investment interest deduction. 2008 tax return This is done on the Qualified Dividends and Capital Gain Tax Worksheet or the Schedule D Tax Worksheet. 2008 tax return For more information about the limit on investment interest, see Investment expenses in chapter 23. 2008 tax return Expenses related to dividend income. 2008 tax return   You may be able to deduct expenses related to dividend income if you itemize your deductions on Schedule A (Form 1040). 2008 tax return See chapter 28 for general information about deducting expenses of producing income. 2008 tax return More information. 2008 tax return    For more information about how to report dividend income, see chapter 1 of Publication 550 or the instructions for the form you must file. 2008 tax return Prev  Up  Next   Home   More Online Publications
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Contact My Local Office in Pennsylvania

Face-to-face Tax Help

IRS Taxpayer Assistance Centers (TACs) are your source for personal tax help when you believe your tax issue can only be handled face-to-face. No appointment is necessary.

Keep in mind, many questions can be resolved online without waiting in line. Through IRS.gov you can:
• Set up a payment plan.
• Get a transcript of your tax return.
• Make a payment.
• Check on your refund.
• Find answers to many of your tax questions.

We are now referring all requests for tax return preparation services to other available resources. You can take advantage of free tax preparation through Free File, Free File Fillable Forms or through a volunteer site in your community. To find the nearest volunteer site location or to get more information about Free File, go to the top of the page and enter “Free Tax Help” in the Search box.

If you have a tax account issues and feel that it requires talking with someone face-to-face, visit your local TAC.

Caution:  Many of our offices are located in Federal Office Buildings. These buildings may not allow visitors to bring in cell phones with camera capabilities.

Multilingual assistance is available in every office. Hours of operation are subject to change.

Before visiting your local office click on "Services Provided" in the chart below to see what services are available. Services are limited and not all services are available at every TAC office and may vary from site to site. You can get these services on a walk-in basis.

City Street Address Days/Hours of Service Telephone*
Altoona 1601 Eleventh Ave.
Altoona, PA 16601

Monday-Friday - 8:30 a.m.- 4:30 p.m.
(Closed for lunch 12:30 p.m.-1:30 p.m.)
 

Services Provided

(814) 944-3532
Bethlehem 3 W. Broad St.
Bethlehem, PA 18018

Monday-Friday - 8:30 a.m.-4:30 p.m.
(Closed for lunch 12:30 p.m.-1:30 p.m.)
 

Services Provided

(610) 865-8208
Butler 220 S. Main St.
Butler PA 16001

Monday-Thursday - 8:30 a.m.-4:30 p.m.
(Closed for lunch 12:30 p.m.-1:30 p.m.)

 

Services Provided

(724) 282-4531
Cranberry 230 Executive Drive
Cranberry TWP, PA 16066

Monday - 8:30 a.m. - 3:30 p.m.
(Closed for lunch 12:30 p.m.-1:30 p.m.)

 

Services Provided

(724) 772-5111
Erie 1314 Griswold Plaza
Erie, PA 16501

Monday-Friday - 8:30 a.m.-4:30 p.m.
(Closed for lunch 12:30 p.m.-1:30 p.m.)

 

Services Provided

(814) 456-8967
Harrisburg 228 Walnut St.
Harrisburg, PA 17108

Monday-Friday - 8:30 a.m.-4:30 p.m.
(Closed for lunch 12:00 noon - 1:00 p.m.)

 

Services Provided

(717) 777-9650
Horsham 200 Lakeside Drive
Horsham, PA 19044

Monday-Friday - 8:30 a.m.-4:30 p.m.
(Closed for lunch 1:30 p.m. - 2:30 p.m.)

 

Services Provided

(215) 887-6134
Johnstown 319 Washington St.
Johnstown, PA 15901 

Monday-Friday - 8:30 a.m.-4:30 p.m.
(Closed for lunch 12:30 p.m. - 1:30 p.m.)

 

Services Provided

(814) 533-4221 
King of Prussia  601 South Henderson Rd.
King of Prussia, PA 19406 

Monday-Friday - 8:30 a.m.-4:30 p.m.
(Closed for lunch 12:30 p.m. - 1:30 p.m.)

 

Services Provided

(610) 992-5130 
Lancaster  1720 Hempstead Rd. 
Lancaster, PA 17601

Monday-Friday - 8:30 a.m.-4:30 p.m.
(Closed for lunch 12:00 noon - 1:00 p.m.)

 

Services Provided

(717) 291-1994

 

Media  1400 N. Providence Rd.
Media, PA 19063 

Monday-Friday - 8:30 a.m.-4:30 p.m.
(Closed for lunch 1:00 p.m.-2:00 p.m.)

 

Services Provided

(610) 891-6002 
Monroeville  4314 Old William Penn Highway
Monroeville, PA 15146

Monday-Friday - 8:30 a.m. - 4:30 p.m..
(Closed for lunch 12:30 p.m.-1:30 p.m.)

 

**This office will be open until 6:00 p.m. on 4/14 & 4/15**

 

Services Provided

(412) 856-1913

 

Philadelphia  600 Arch St.
Philadelphia, PA 19106 

Monday-Friday - 8:30 a.m.-4:30 p.m.

 

**This office will be open until 6:00 p.m. on 4/14 & 4/15**
 

Services Provided

(215) 861-1225 
Pittsburgh  1000 Liberty Avenue
Pittsburgh, PA 15222 

Monday-Friday - 8:30 a.m.-4:30 p.m.

 

Services Provided

(412) 395-5667 
Reading  201 Penn St.
Reading, PA 19601 

Monday-Friday - 8:30  a.m.-4:30 p.m.
(Closed for lunch 1:00 p.m.-2:00 p.m.)

 

Services Provided

(610) 320-5154 
Scranton  409 Lackawanna Ave.
Scranton, PA 18503 

Monday-Friday - 8:30 a.m.- 4:30 p.m.
(Closed for lunch 12:30 p.m. - 1:30 p.m.)

 

Services Provided

(570) 961-2493

 

State College/
remote Taxpayer
Assistance
available at
RSVP of
Centre County
Willowbank
Building
 
RSVP of Centre County,
Willowbank Building
420 Holmes Street,
Room 339
Bellefonte,PA 16823

Monday-Friday, 8:30 a.m.-4:00 p.m.
(Closed Wednesdays from 12:00 noon to 1:00 p.m.)

 

 Virtual Services Provided

(814) 234-8735
Washington  162 W. Chestnut St.
Washington, PA 15301 

Monday-Friday - 8:30 a.m.-4:30 p.m.
(Closed for lunch 12:30 p.m.-1:30 p.m.)

 

Services Provided

(724) 229-5985 
Wilkes-Barre  7 North Wilkes-Barre Blvd.
Wilkes-Barre, PA 18702

Monday-Friday - 8:30 a.m.-4:30 p.m.
(Closed for lunch 12:30 p.m. - 1:30 p.m.)

 

Services Provided

(570) 821-4076 
Williamsport  330 Pine St.
Williamsport, PA 17701 

Monday - Friday - 8:30 a.m.-4:30 p.m.; 
(Closed for lunch 12:30 p.m. - 1:30 p.m.)

 

**This office will be closed 3/31**

 

Services Provided

(570) 326-1632 
York  2670 Industrial Highway
York, PA 17402 

Monday-Friday - 8:30 a.m.-4:30 p.m.
(Closed for lunch 12:30 p.m. - 1:30 p.m.)

 

Services Provided

(717) 757-4977

 

* Note: The phone numbers in the chart above are not toll-free for all locations. When you call, you will reach a recorded business message with information about office hours, locations and services provided in that office. If face-to-face assistance is not a priority for you, you may also get help with IRS letters or resolve tax account issues by phone, toll free at 1-800-829-1040 (individuals) or 1-800-829-4933 (businesses).

For information on where to file your tax return please see Where to File Addresses

The Taxpayer Advocate Service: Call (215) 861-1304 in Philadelphia or (412) 395-5987 in Pittsburgh, or 1-877-777-4778 elsewhere, or see Publication 1546, The Taxpayer Advocate Service of the IRS. For further information, see Tax Topic 104
 

Partnerships

IRS and organizations all over the country are partnering to assist individual and families. Through these partnerships, organizations are also achieving their own goals. These mutually beneficial partnerships are strengthening outreach efforts and bringing education and assistance to millions.

For more information about these programs for individuals and families, contact the Stakeholder Partnerships, Education and Communication Office at:

Internal Revenue Service
600 Arch St.
Philadelphia, PA 19106

Internal Revenue Service
WS Moorehead Bldg
1000 Liberty Ave.
Pittsburgh, PA 15226

For more information about these programs for businesses, your local Stakeholder Liaison office establishes relationships with organizations representing small business and self-employed taxpayers. They provide information about the policies, practices and procedures the IRS uses to ensure compliance with the tax laws. To establish a relationship with us, use this list to find a contact in your state:

Stakeholder Liaison (SL) Phone Numbers for Organizations Representing Small Businesses and Self-employed Taxpayers.

Page Last Reviewed or Updated: 31-Mar-2014

The 2008 Tax Return

2008 tax return Index A Asistencia, Cómo Obtener Ayuda con los Impuestos Ayuda, Cómo Obtener Ayuda con los Impuestos Ayuda tributaria, Cómo Obtener Ayuda con los Impuestos B Base ajustada Hoja de Trabajo 1 para calcular, Instrucciones para la Hoja de Trabajo A. 2008 tax return H Hojas de Trabajo Base ajustada (Hoja de Trabajo 1), Instrucciones para la Hoja de Trabajo A. 2008 tax return I Información de usuarios de equipo TTY/TDD, Cómo Obtener Ayuda con los Impuestos M Más información, Cómo Obtener Ayuda con los Impuestos P Publicaciones, Cómo Obtener Ayuda con los Impuestos S Servicios Tributario Gratuito, Cómo Obtener Ayuda con los Impuestos V Vea la ayuda tributaria, Cómo Obtener Ayuda con los Impuestos Prev  Up     Home   More Online Publications