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2009 Form 1040 Ez

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2009 Form 1040 Ez

2009 form 1040 ez Publication 575 - Additional Material Table of Contents Worksheet A. 2009 form 1040 ez Simplified Method 1. 2009 form 1040 ez Enter the total pension or annuity payments received this year. 2009 form 1040 ez Also, add this amount to the total for Form 1040, line 16a; Form 1040A, line 12a; or Form 1040NR, line 17a 1. 2009 form 1040 ez   2. 2009 form 1040 ez Enter your cost in the plan (contract) at the annuity starting date plus any death benefit exclusion. 2009 form 1040 ez * See Cost (Investment in the Contract) , earlier 2. 2009 form 1040 ez   Note: If your annuity starting date was before this year and you completed this worksheet last year, skip line 3 and enter the amount from line 4 of last year's worksheet on line 4 below (even if the amount of your pension or annuity has changed). 2009 form 1040 ez Otherwise, go to line 3. 2009 form 1040 ez   3. 2009 form 1040 ez Enter the appropriate number from Table 1 below. 2009 form 1040 ez But if your annuity starting date was after 1997 and the payments are for your life and that of your beneficiary, enter the appropriate number from Table 2 below. 2009 form 1040 ez 3. 2009 form 1040 ez   4. 2009 form 1040 ez Divide line 2 by the number on line 3 4. 2009 form 1040 ez   5. 2009 form 1040 ez Multiply line 4 by the number of months for which this year's payments were made. 2009 form 1040 ez If your annuity starting date was before 1987, enter this amount on line 8 below and skip lines 6, 7, 10, and 11. 2009 form 1040 ez Otherwise, go to line 6 5. 2009 form 1040 ez   6. 2009 form 1040 ez Enter any amounts previously recovered tax free in years after 1986. 2009 form 1040 ez This is the amount shown on line 10 of your worksheet for last year 6. 2009 form 1040 ez   7. 2009 form 1040 ez Subtract line 6 from line 2 7. 2009 form 1040 ez   8. 2009 form 1040 ez Enter the smaller of line 5 or line 7 8. 2009 form 1040 ez   9. 2009 form 1040 ez Taxable amount for year. 2009 form 1040 ez Subtract line 8 from line 1. 2009 form 1040 ez Enter the result, but not less than zero. 2009 form 1040 ez Also, add this amount to the total for Form 1040, line 16b; Form 1040A, line 12b; or Form 1040NR, line 17b. 2009 form 1040 ez  Note: If your Form 1099-R shows a larger taxable amount, use the amount figured on this line instead. 2009 form 1040 ez If you are a retired public safety officer, see Insurance Premiums for Retired Public Safety Officers , earlier, before entering an amount on your tax return 9. 2009 form 1040 ez   10. 2009 form 1040 ez Was your annuity starting date before 1987? □ Yes. 2009 form 1040 ez STOP. 2009 form 1040 ez Do not complete the rest of this worksheet. 2009 form 1040 ez  □ No. 2009 form 1040 ez Add lines 6 and 8. 2009 form 1040 ez This is the amount you have recovered tax free through 2013. 2009 form 1040 ez You will need this number if you need to fill out this worksheet next year 10. 2009 form 1040 ez   11. 2009 form 1040 ez Balance of cost to be recovered. 2009 form 1040 ez Subtract line 10 from line 2. 2009 form 1040 ez If zero, you will not have to complete this worksheet next year. 2009 form 1040 ez The payments you receive next year will generally be fully taxable 11. 2009 form 1040 ez   * A death benefit exclusion (up to $5,000) applied to certain benefits received by employees who died before August 21, 1996. 2009 form 1040 ez Table 1 for Line 3 Above   IF the age at  annuity starting date was . 2009 form 1040 ez . 2009 form 1040 ez . 2009 form 1040 ez         AND your annuity starting date was—     BEFORE November 19, 1996,  enter on line 3 . 2009 form 1040 ez . 2009 form 1040 ez . 2009 form 1040 ez AFTER November 18, 1996,  enter on line 3 . 2009 form 1040 ez . 2009 form 1040 ez . 2009 form 1040 ez   55 or under 300 360   56-60 260 310   61-65 240 260   66-70 170 210   71 or over 120 160 Table 2 for Line 3 Above   IF the combined ages at annuity starting date were . 2009 form 1040 ez . 2009 form 1040 ez . 2009 form 1040 ez   THEN enter on line 3 . 2009 form 1040 ez . 2009 form 1040 ez . 2009 form 1040 ez         110 or under   410         111-120   360         121-130   310         131-140   260         141 or over   210       Prev  Up  Next   Home   More Online Publications
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Understanding Your LT26 Notice

You were previously asked information regarding the filing of your tax return for a specific tax period.


What you need to do

  • File the tax return to the address on the letter.
  • If return previously filed, contact the telephone number listed on the letter.
  • If not required to file a tax return, contact the telephone number listed on the letter.

You may want to

  • Contact our office either by phone or mail the return within 10 days of the date of this letter.
  • An envelope is provided for your convenience.

Answers to Common Questions

Q. Based on my income I do not think I need to file?

A. Check irs.gov to see if your income is below the filing requirement, but you should still contact IRS.

Q. What if I already filed the return?

A. If it has been over 10 weeks, send a signed copy of the return again.

Q. Why are you contacting me to file the return? Am I due a refund?

A. To receive the refund, a delinquent return must be filed within three years of the original return due date, or within two years of the date of the payment, if applicable.

Q. What if I am unable to pay the full balance at the time of filing?

A. Go to irs.gov and complete Form 9464 (Installment Agreement Request) and mail with the return.

 

Page Last Reviewed or Updated: 28-Jan-2014

How to get help

  • Call the 1-800 number listed on the top right corner of your notice.
  • Authorize someone (e.g., accountant) to contact the IRS on your behalf using Form 2848.
  • See if you qualify for help from a Low Income Taxpayer Clinic.
     

The 2009 Form 1040 Ez

2009 form 1040 ez 8. 2009 form 1040 ez   Dividends and Other Distributions Table of Contents Reminder Introduction Useful Items - You may want to see: General InformationDividends not reported on Form 1099-DIV. 2009 form 1040 ez Reporting tax withheld. 2009 form 1040 ez Nominees. 2009 form 1040 ez Ordinary DividendsQualified Dividends Dividends Used to Buy More Stock Money Market Funds Capital Gain DistributionsBasis adjustment. 2009 form 1040 ez Nondividend DistributionsLiquidating Distributions Distributions of Stock and Stock Rights Other DistributionsInformation reporting requirement. 2009 form 1040 ez Alternative minimum tax treatment. 2009 form 1040 ez How To Report Dividend IncomeInvestment interest deducted. 2009 form 1040 ez Reminder Foreign-source income. 2009 form 1040 ez  If you are a U. 2009 form 1040 ez S. 2009 form 1040 ez 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. 2009 form 1040 ez S. 2009 form 1040 ez law. 2009 form 1040 ez 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. 2009 form 1040 ez 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. 2009 form 1040 ez This chapter also explains how to report dividend income on your tax return. 2009 form 1040 ez Dividends are distributions of money, stock, or other property paid to you by a corporation or by a mutual fund. 2009 form 1040 ez You also may receive dividends through a partnership, an estate, a trust, or an association that is taxed as a corporation. 2009 form 1040 ez However, some amounts you receive that are called dividends are actually interest income. 2009 form 1040 ez (See Dividends that are actually interest under Taxable Interest in chapter 7. 2009 form 1040 ez ) Most distributions are paid in cash (or check). 2009 form 1040 ez However, distributions can consist of more stock, stock rights, other property, or services. 2009 form 1040 ez 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. 2009 form 1040 ez Tax on unearned income of certain children. 2009 form 1040 ez   Part of a child's 2013 unearned income may be taxed at the parent's tax rate. 2009 form 1040 ez If it is, Form 8615, Tax for Certain Children Who Have Unearned Income, must be completed and attached to the child's tax return. 2009 form 1040 ez If not, Form 8615 is not required and the child's income is taxed at his or her own tax rate. 2009 form 1040 ez    Some parents can choose to include the child's interest and dividends on the parent's return if certain requirements are met. 2009 form 1040 ez Use Form 8814, Parents' Election To Report Child's Interest and Dividends, for this purpose. 2009 form 1040 ez   For more information about the tax on unearned income of children and the parents' election, see chapter 31. 2009 form 1040 ez Beneficiary of an estate or trust. 2009 form 1040 ez    Dividends and other distributions you receive as a beneficiary of an estate or trust are generally taxable income. 2009 form 1040 ez You should receive a Schedule K-1 (Form 1041), Beneficiary's Share of Income, Deductions, Credits, etc. 2009 form 1040 ez , from the fiduciary. 2009 form 1040 ez Your copy of Schedule K-1 (Form 1041) and its instructions will tell you where to report the income on your Form 1040. 2009 form 1040 ez Social security number (SSN) or individual taxpayer identification number (ITIN). 2009 form 1040 ez    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. 2009 form 1040 ez This includes payers of dividends. 2009 form 1040 ez If you do not give your SSN or ITIN to the payer of dividends, you may have to pay a penalty. 2009 form 1040 ez For more information on SSNs and ITINs, see Social Security Number (SSN) in chapter 1. 2009 form 1040 ez Backup withholding. 2009 form 1040 ez   Your dividend income is generally not subject to regular withholding. 2009 form 1040 ez However, it may be subject to backup withholding to ensure that income tax is collected on the income. 2009 form 1040 ez Under backup withholding, the payer of dividends must withhold, as income tax, on the amount you are paid, applying the appropriate withholding rate. 2009 form 1040 ez   Backup withholding may also be required if the IRS has determined that you underreported your interest or dividend income. 2009 form 1040 ez For more information, see Backup Withholding in chapter 4. 2009 form 1040 ez Stock certificate in two or more names. 2009 form 1040 ez   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. 2009 form 1040 ez Form 1099-DIV. 2009 form 1040 ez   Most corporations and mutual funds use Form 1099-DIV, Dividends and Distributions, to show you the distributions you received from them during the year. 2009 form 1040 ez Keep this form with your records. 2009 form 1040 ez You do not have to attach it to your tax return. 2009 form 1040 ez Dividends not reported on Form 1099-DIV. 2009 form 1040 ez   Even if you do not receive Form 1099-DIV, you must still report all your taxable dividend income. 2009 form 1040 ez For example, you may receive distributive shares of dividends from partnerships or S corporations. 2009 form 1040 ez These dividends are reported to you on Schedule K-1 (Form 1065), Partner's Share of Income, Deductions, Credits, etc. 2009 form 1040 ez , and Schedule K-1 (Form 1120S), Shareholder's Share of Income, Deductions, Credits, etc. 2009 form 1040 ez Reporting tax withheld. 2009 form 1040 ez   If tax is withheld from your dividend income, the payer must give you a Form 1099-DIV that indicates the amount withheld. 2009 form 1040 ez Nominees. 2009 form 1040 ez   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. 2009 form 1040 ez Form 1099-MISC. 2009 form 1040 ez   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. 2009 form 1040 ez See Reporting Substitute Payments under Short Sales in chapter 4 of Publication 550 for more information about reporting these payments. 2009 form 1040 ez Incorrect amount shown on a Form 1099. 2009 form 1040 ez   If you receive a Form 1099 that shows an incorrect amount (or other incorrect information), you should ask the issuer for a corrected form. 2009 form 1040 ez The new Form 1099 you receive will be marked “Corrected. 2009 form 1040 ez ” Dividends on stock sold. 2009 form 1040 ez   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. 2009 form 1040 ez Dividends received in January. 2009 form 1040 ez   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. 2009 form 1040 ez You report the dividend in the year it was declared. 2009 form 1040 ez Ordinary Dividends Ordinary (taxable) dividends are the most common type of distribution from a corporation or a mutual fund. 2009 form 1040 ez They are paid out of earnings and profits and are ordinary income to you. 2009 form 1040 ez This means they are not capital gains. 2009 form 1040 ez 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. 2009 form 1040 ez Ordinary dividends will be shown in box 1a of the Form 1099-DIV you receive. 2009 form 1040 ez 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. 2009 form 1040 ez They should be shown in box 1b of the Form 1099-DIV you receive. 2009 form 1040 ez The maximum rate of tax on qualified dividends is: 0% on any amount that otherwise would be taxed at a 10% or 15% rate. 2009 form 1040 ez 15% on any amount that otherwise would be taxed at rates greater than 15% but less than 39. 2009 form 1040 ez 6%. 2009 form 1040 ez 20% on any amount that otherwise would be taxed at a 39. 2009 form 1040 ez 6% rate. 2009 form 1040 ez To qualify for the maximum rate, all of the following requirements must be met. 2009 form 1040 ez The dividends must have been paid by a U. 2009 form 1040 ez S. 2009 form 1040 ez corporation or a qualified foreign corporation. 2009 form 1040 ez (See Qualified foreign corporation , later. 2009 form 1040 ez ) The dividends are not of the type listed later under Dividends that are not qualified dividends . 2009 form 1040 ez You meet the holding period (discussed next). 2009 form 1040 ez Holding period. 2009 form 1040 ez   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. 2009 form 1040 ez 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. 2009 form 1040 ez Instead, the seller will get the dividend. 2009 form 1040 ez   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. 2009 form 1040 ez See the examples later. 2009 form 1040 ez Exception for preferred stock. 2009 form 1040 ez   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. 2009 form 1040 ez If the preferred dividends are due to periods totaling less than 367 days, the holding period in the previous paragraph applies. 2009 form 1040 ez Example 1. 2009 form 1040 ez You bought 5,000 shares of XYZ Corp. 2009 form 1040 ez common stock on July 9, 2013. 2009 form 1040 ez XYZ Corp. 2009 form 1040 ez paid a cash dividend of 10 cents per share. 2009 form 1040 ez The ex-dividend date was July 16, 2013. 2009 form 1040 ez Your Form 1099-DIV from XYZ Corp. 2009 form 1040 ez shows $500 in box 1a (ordinary dividends) and in box 1b (qualified dividends). 2009 form 1040 ez However, you sold the 5,000 shares on August 12, 2013. 2009 form 1040 ez You held your shares of XYZ Corp. 2009 form 1040 ez for only 34 days of the 121-day period (from July 10, 2013, through August 12, 2013). 2009 form 1040 ez The 121-day period began on May 17, 2013 (60 days before the ex-dividend date), and ended on September 14, 2013. 2009 form 1040 ez You have no qualified dividends from XYZ Corp. 2009 form 1040 ez because you held the XYZ stock for less than 61 days. 2009 form 1040 ez Example 2. 2009 form 1040 ez 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. 2009 form 1040 ez You held the stock for 63 days (from July 16, 2013, through September 16, 2013). 2009 form 1040 ez 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). 2009 form 1040 ez Example 3. 2009 form 1040 ez You bought 10,000 shares of ABC Mutual Fund common stock on July 9, 2013. 2009 form 1040 ez ABC Mutual Fund paid a cash dividend of 10 cents a share. 2009 form 1040 ez The ex-dividend date was July 16, 2013. 2009 form 1040 ez The ABC Mutual Fund advises you that the portion of the dividend eligible to be treated as qualified dividends equals 2 cents per share. 2009 form 1040 ez Your Form 1099-DIV from ABC Mutual Fund shows total ordinary dividends of $1,000 and qualified dividends of $200. 2009 form 1040 ez However, you sold the 10,000 shares on August 12, 2013. 2009 form 1040 ez You have no qualified dividends from ABC Mutual Fund because you held the ABC Mutual Fund stock for less than 61 days. 2009 form 1040 ez Holding period reduced where risk of loss is diminished. 2009 form 1040 ez   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. 2009 form 1040 ez 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. 2009 form 1040 ez You were grantor (writer) of an option to buy substantially identical stock or securities. 2009 form 1040 ez Your risk of loss is diminished by holding one or more other positions in substantially similar or related property. 2009 form 1040 ez   For information about how to apply condition (3), see Regulations section 1. 2009 form 1040 ez 246-5. 2009 form 1040 ez Qualified foreign corporation. 2009 form 1040 ez   A foreign corporation is a qualified foreign corporation if it meets any of the following conditions. 2009 form 1040 ez The corporation is incorporated in a U. 2009 form 1040 ez S. 2009 form 1040 ez possession. 2009 form 1040 ez 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. 2009 form 1040 ez For a list of those treaties, see Table 8-1. 2009 form 1040 ez 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. 2009 form 1040 ez See Readily tradable stock , later. 2009 form 1040 ez Exception. 2009 form 1040 ez   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. 2009 form 1040 ez Readily tradable stock. 2009 form 1040 ez   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. 2009 form 1040 ez For a list of the exchanges that meet these requirements, see www. 2009 form 1040 ez sec. 2009 form 1040 ez gov/divisions/marketreg/mrexchanges. 2009 form 1040 ez shtml. 2009 form 1040 ez Dividends that are not qualified dividends. 2009 form 1040 ez   The following dividends are not qualified dividends. 2009 form 1040 ez They are not qualified dividends even if they are shown in box 1b of Form 1099-DIV. 2009 form 1040 ez Capital gain distributions. 2009 form 1040 ez Dividends paid on deposits with mutual savings banks, cooperative banks, credit unions, U. 2009 form 1040 ez S. 2009 form 1040 ez building and loan associations, U. 2009 form 1040 ez S. 2009 form 1040 ez savings and loan associations, federal savings and loan associations, and similar financial institutions. 2009 form 1040 ez (Report these amounts as interest income. 2009 form 1040 ez ) 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. 2009 form 1040 ez 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. 2009 form 1040 ez 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. 2009 form 1040 ez Payments in lieu of dividends, but only if you know or have reason to know the payments are not qualified dividends. 2009 form 1040 ez 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. 2009 form 1040 ez Table 8-1. 2009 form 1040 ez Income Tax Treaties Income tax treaties the United States has with the following countries satisfy requirement (2) under Qualified foreign corporation. 2009 form 1040 ez 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. 2009 form 1040 ez 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. 2009 form 1040 ez Most mutual funds also permit shareholders to automatically reinvest distributions in more shares in the fund, instead of receiving cash. 2009 form 1040 ez 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. 2009 form 1040 ez 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. 2009 form 1040 ez 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. 2009 form 1040 ez But you may be able to deduct the service charge. 2009 form 1040 ez See chapter 28 for more information about deducting expenses of producing income. 2009 form 1040 ez In some dividend reinvestment plans, you can invest more cash to buy shares of stock at a price less than fair market value. 2009 form 1040 ez 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. 2009 form 1040 ez When figuring this amount, use the fair market value of the stock on the dividend payment date. 2009 form 1040 ez Money Market Funds Report amounts you receive from money market funds as dividend income. 2009 form 1040 ez Money market funds are a type of mutual fund and should not be confused with bank money market accounts that pay interest. 2009 form 1040 ez 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). 2009 form 1040 ez They will be shown in box 2a of the Form 1099-DIV you receive from the mutual fund or REIT. 2009 form 1040 ez Report capital gain distributions as long-term capital gains, regardless of how long you owned your shares in the mutual fund or REIT. 2009 form 1040 ez Undistributed capital gains of mutual funds and REITs. 2009 form 1040 ez    Some mutual funds and REITs keep their long-term capital gains and pay tax on them. 2009 form 1040 ez You must treat your share of these gains as distributions, even though you did not actually receive them. 2009 form 1040 ez However, they are not included on Form 1099-DIV. 2009 form 1040 ez Instead, they are reported to you in box 1a of Form 2439. 2009 form 1040 ez   Report undistributed capital gains (box 1a of Form 2439) as long-term capital gains on Schedule D (Form 1040), column (h), line 11. 2009 form 1040 ez   The tax paid on these gains by the mutual fund or REIT is shown in box 2 of Form 2439. 2009 form 1040 ez You take credit for this tax by including it on Form 1040, line 71, and checking box a on that line. 2009 form 1040 ez Attach Copy B of Form 2439 to your return, and keep Copy C for your records. 2009 form 1040 ez Basis adjustment. 2009 form 1040 ez   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. 2009 form 1040 ez Additional information. 2009 form 1040 ez   For more information on the treatment of distributions from mutual funds, see Publication 550. 2009 form 1040 ez 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. 2009 form 1040 ez You should receive a Form 1099-DIV or other statement showing the nondividend distribution. 2009 form 1040 ez On Form 1099-DIV, a nondividend distribution will be shown in box 3. 2009 form 1040 ez If you do not receive such a statement, you report the distribution as an ordinary dividend. 2009 form 1040 ez Basis adjustment. 2009 form 1040 ez   A nondividend distribution reduces the basis of your stock. 2009 form 1040 ez It is not taxed until your basis in the stock is fully recovered. 2009 form 1040 ez This nontaxable portion is also called a return of capital; it is a return of your investment in the stock of the company. 2009 form 1040 ez 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. 2009 form 1040 ez   When the basis of your stock has been reduced to zero, report any additional nondividend distribution you receive as a capital gain. 2009 form 1040 ez Whether you report it as a long-term or short-term capital gain depends on how long you have held the stock. 2009 form 1040 ez See Holding Period in chapter 14. 2009 form 1040 ez Example. 2009 form 1040 ez You bought stock in 2000 for $100. 2009 form 1040 ez In 2003, you received a nondividend distribution of $80. 2009 form 1040 ez You did not include this amount in your income, but you reduced the basis of your stock to $20. 2009 form 1040 ez You received a nondividend distribution of $30 in 2013. 2009 form 1040 ez The first $20 of this amount reduced your basis to zero. 2009 form 1040 ez You report the other $10 as a long-term capital gain for 2013. 2009 form 1040 ez You must report as a long-term capital gain any nondividend distribution you receive on this stock in later years. 2009 form 1040 ez Liquidating Distributions Liquidating distributions, sometimes called liquidating dividends, are distributions you receive during a partial or complete liquidation of a corporation. 2009 form 1040 ez These distributions are, at least in part, one form of a return of capital. 2009 form 1040 ez They may be paid in one or more installments. 2009 form 1040 ez You will receive Form 1099-DIV from the corporation showing you the amount of the liquidating distribution in box 8 or 9. 2009 form 1040 ez For more information on liquidating distributions, see chapter 1 of Publication 550. 2009 form 1040 ez Distributions of Stock and Stock Rights Distributions by a corporation of its own stock are commonly known as stock dividends. 2009 form 1040 ez Stock rights (also known as “stock options”) are distributions by a corporation of rights to acquire the corporation's stock. 2009 form 1040 ez Generally, stock dividends and stock rights are not taxable to you, and you do not report them on your return. 2009 form 1040 ez Taxable stock dividends and stock rights. 2009 form 1040 ez   Distributions of stock dividends and stock rights are taxable to you if any of the following apply. 2009 form 1040 ez You or any other shareholder have the choice to receive cash or other property instead of stock or stock rights. 2009 form 1040 ez 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. 2009 form 1040 ez The distribution is in convertible preferred stock and has the same result as in (2). 2009 form 1040 ez The distribution gives preferred stock to some common stock shareholders and common stock to other common stock shareholders. 2009 form 1040 ez The distribution is on preferred stock. 2009 form 1040 ez (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. 2009 form 1040 ez )   The term “stock” includes rights to acquire stock, and the term “shareholder” includes a holder of rights or of convertible securities. 2009 form 1040 ez If you receive taxable stock dividends or stock rights, include their fair market value at the time of distribution in your income. 2009 form 1040 ez Preferred stock redeemable at a premium. 2009 form 1040 ez   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. 2009 form 1040 ez For more information, see chapter 1 of Publication 550. 2009 form 1040 ez Basis. 2009 form 1040 ez   Your basis in stock or stock rights received in a taxable distribution is their fair market value when distributed. 2009 form 1040 ez 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. 2009 form 1040 ez Fractional shares. 2009 form 1040 ez    You may not own enough stock in a corporation to receive a full share of stock if the corporation declares a stock dividend. 2009 form 1040 ez 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. 2009 form 1040 ez Any cash you receive for fractional shares under such a plan is treated as an amount realized on the sale of the fractional shares. 2009 form 1040 ez Report this transaction on Form 8949, Sales and Other Dispositions of Capital Assets. 2009 form 1040 ez 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. 2009 form 1040 ez    Report these transactions on Form 8949 with the correct box checked. 2009 form 1040 ez   For more information on Form 8949 and Schedule D (Form 1040), see chapter 4 of Publication 550. 2009 form 1040 ez Also see the Instructions for Form 8949 and the Instructions for Schedule D (Form 1040). 2009 form 1040 ez Example. 2009 form 1040 ez You own one share of common stock that you bought on January 3, 2004, for $100. 2009 form 1040 ez The corporation declared a common stock dividend of 5% on June 29, 2013. 2009 form 1040 ez The fair market value of the stock at the time the stock dividend was declared was $200. 2009 form 1040 ez You were paid $10 for the fractional-share stock dividend under a plan described in the discussion above. 2009 form 1040 ez You figure your gain or loss as follows: Fair market value of old stock $200. 2009 form 1040 ez 00 Fair market value of stock dividend (cash received) +10. 2009 form 1040 ez 00 Fair market value of old stock and stock dividend $210. 2009 form 1040 ez 00 Basis (cost) of old stock after the stock dividend (($200 ÷ $210) × $100) $95. 2009 form 1040 ez 24 Basis (cost) of stock dividend (($10 ÷ $210) × $100) + 4. 2009 form 1040 ez 76 Total $100. 2009 form 1040 ez 00 Cash received $10. 2009 form 1040 ez 00 Basis (cost) of stock dividend − 4. 2009 form 1040 ez 76 Gain $5. 2009 form 1040 ez 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. 2009 form 1040 ez Scrip dividends. 2009 form 1040 ez   A corporation that declares a stock dividend may issue you a scrip certificate that entitles you to a fractional share. 2009 form 1040 ez The certificate is generally nontaxable when you receive it. 2009 form 1040 ez 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. 2009 form 1040 ez   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. 2009 form 1040 ez You must include its fair market value in income on the date you receive it. 2009 form 1040 ez Other Distributions You may receive any of the following distributions during the year. 2009 form 1040 ez Exempt-interest dividends. 2009 form 1040 ez   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. 2009 form 1040 ez Exempt-interest dividends should be shown in box 10 of Form 1099-DIV. 2009 form 1040 ez Information reporting requirement. 2009 form 1040 ez   Although exempt-interest dividends are not taxable, you must show them on your tax return if you have to file a return. 2009 form 1040 ez This is an information reporting requirement and does not change the exempt-interest dividends to taxable income. 2009 form 1040 ez Alternative minimum tax treatment. 2009 form 1040 ez   Exempt-interest dividends paid from specified private activity bonds may be subject to the alternative minimum tax. 2009 form 1040 ez See Alternative Minimum Tax (AMT) in chapter 30 for more information. 2009 form 1040 ez Dividends on insurance policies. 2009 form 1040 ez    Insurance policy dividends the insurer keeps and uses to pay your premiums are not taxable. 2009 form 1040 ez However, you must report as taxable interest income the interest that is paid or credited on dividends left with the insurance company. 2009 form 1040 ez    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. 2009 form 1040 ez Do not include them in your gross income until they are more than the total of all net premiums you paid for the contract. 2009 form 1040 ez Report any taxable distributions on insurance policies on Form 1040, line 21. 2009 form 1040 ez Dividends on veterans' insurance. 2009 form 1040 ez   Dividends you receive on veterans' insurance policies are not taxable. 2009 form 1040 ez In addition, interest on dividends left with the Department of Veterans Affairs is not taxable. 2009 form 1040 ez Patronage dividends. 2009 form 1040 ez   Generally, patronage dividends you receive in money from a cooperative organization are included in your income. 2009 form 1040 ez   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. 2009 form 1040 ez But you must reduce the basis (cost) of the items bought. 2009 form 1040 ez If the dividend is more than the adjusted basis of the assets, you must report the excess as income. 2009 form 1040 ez   These rules are the same whether the cooperative paying the dividend is a taxable or tax-exempt cooperative. 2009 form 1040 ez Alaska Permanent Fund dividends. 2009 form 1040 ez    Do not report these amounts as dividends. 2009 form 1040 ez Instead, report these amounts on Form 1040, line 21; Form 1040A, line 13; or Form 1040EZ, line 3. 2009 form 1040 ez How To Report Dividend Income Generally, you can use either Form 1040 or Form 1040A to report your dividend income. 2009 form 1040 ez Report the total of your ordinary dividends on line 9a of Form 1040 or Form 1040A. 2009 form 1040 ez Report qualified dividends on line 9b of Form 1040 or Form 1040A. 2009 form 1040 ez If you receive capital gain distributions, you may be able to use Form 1040A or you may have to use Form 1040. 2009 form 1040 ez See Exceptions to filing Form 8949 and Schedule D (Form 1040) in chapter 16. 2009 form 1040 ez If you receive nondividend distributions required to be reported as capital gains, you must use Form 1040. 2009 form 1040 ez You cannot use Form 1040EZ if you receive any dividend income. 2009 form 1040 ez Form 1099-DIV. 2009 form 1040 ez   If you owned stock on which you received $10 or more in dividends and other distributions, you should receive a Form 1099-DIV. 2009 form 1040 ez Even if you do not receive Form 1099-DIV, you must report all your dividend income. 2009 form 1040 ez   See Form 1099-DIV for more information on how to report dividend income. 2009 form 1040 ez Form 1040A or 1040. 2009 form 1040 ez    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. 2009 form 1040 ez If your ordinary dividends are more than $1,500, you must also complete Schedule B (Form 1040A or 1040), Part III. 2009 form 1040 ez   List on Schedule B (Form 1040A or 1040), Part II, line 5, each payer's name and the ordinary dividends you received. 2009 form 1040 ez 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. 2009 form 1040 ez 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. 2009 form 1040 ez   Enter on line 6 the total of the amounts listed on line 5. 2009 form 1040 ez Also enter this total on line 9a of Form 1040A or 1040. 2009 form 1040 ez Qualified dividends. 2009 form 1040 ez   Report qualified dividends (Form 1099-DIV, box 1b) on line 9b of Form 1040 or Form 1040A. 2009 form 1040 ez The amount in box 1b is already included in box 1a. 2009 form 1040 ez Do not add the amount in box 1b to, or substract it from, the amount in box 1a. 2009 form 1040 ez   Do not include any of the following on line 9b. 2009 form 1040 ez Qualified dividends you received as a nominee. 2009 form 1040 ez See Nominees under How to Report Dividend Income in chapter 1 of Publication 550. 2009 form 1040 ez Dividends on stock for which you did not meet the holding period. 2009 form 1040 ez See Holding period , earlier under Qualified Dividends. 2009 form 1040 ez 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. 2009 form 1040 ez Payments in lieu of dividends, but only if you know or have reason to know the payments are not qualified dividends. 2009 form 1040 ez 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. 2009 form 1040 ez   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. 2009 form 1040 ez Enter qualified dividends on line 2 of the worksheet. 2009 form 1040 ez Investment interest deducted. 2009 form 1040 ez   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. 2009 form 1040 ez Reduce it by the qualified dividends you choose to include in investment income when figuring the limit on your investment interest deduction. 2009 form 1040 ez This is done on the Qualified Dividends and Capital Gain Tax Worksheet or the Schedule D Tax Worksheet. 2009 form 1040 ez For more information about the limit on investment interest, see Investment expenses in chapter 23. 2009 form 1040 ez Expenses related to dividend income. 2009 form 1040 ez   You may be able to deduct expenses related to dividend income if you itemize your deductions on Schedule A (Form 1040). 2009 form 1040 ez See chapter 28 for general information about deducting expenses of producing income. 2009 form 1040 ez More information. 2009 form 1040 ez    For more information about how to report dividend income, see chapter 1 of Publication 550 or the instructions for the form you must file. 2009 form 1040 ez Prev  Up  Next   Home   More Online Publications