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Download 1040ez federal tax form 8. Download 1040ez federal tax form   Dividends and Other Distributions Table of Contents Reminder Introduction Useful Items - You may want to see: General InformationDividends not reported on Form 1099-DIV. Download 1040ez federal tax form Reporting tax withheld. Download 1040ez federal tax form Nominees. Download 1040ez federal tax form Ordinary DividendsQualified Dividends Dividends Used to Buy More Stock Money Market Funds Capital Gain DistributionsBasis adjustment. Download 1040ez federal tax form Nondividend DistributionsLiquidating Distributions Distributions of Stock and Stock Rights Other DistributionsInformation reporting requirement. Download 1040ez federal tax form Alternative minimum tax treatment. Download 1040ez federal tax form How To Report Dividend IncomeInvestment interest deducted. Download 1040ez federal tax form Reminder Foreign-source income. Download 1040ez federal tax form  If you are a U. Download 1040ez federal tax form S. Download 1040ez federal tax form 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. Download 1040ez federal tax form S. Download 1040ez federal tax form law. Download 1040ez federal tax form 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. Download 1040ez federal tax form 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. Download 1040ez federal tax form This chapter also explains how to report dividend income on your tax return. Download 1040ez federal tax form Dividends are distributions of money, stock, or other property paid to you by a corporation or by a mutual fund. Download 1040ez federal tax form You also may receive dividends through a partnership, an estate, a trust, or an association that is taxed as a corporation. Download 1040ez federal tax form However, some amounts you receive that are called dividends are actually interest income. Download 1040ez federal tax form (See Dividends that are actually interest under Taxable Interest in chapter 7. Download 1040ez federal tax form ) Most distributions are paid in cash (or check). Download 1040ez federal tax form However, distributions can consist of more stock, stock rights, other property, or services. Download 1040ez federal tax form 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. Download 1040ez federal tax form Tax on unearned income of certain children. Download 1040ez federal tax form   Part of a child's 2013 unearned income may be taxed at the parent's tax rate. Download 1040ez federal tax form If it is, Form 8615, Tax for Certain Children Who Have Unearned Income, must be completed and attached to the child's tax return. Download 1040ez federal tax form If not, Form 8615 is not required and the child's income is taxed at his or her own tax rate. Download 1040ez federal tax form    Some parents can choose to include the child's interest and dividends on the parent's return if certain requirements are met. Download 1040ez federal tax form Use Form 8814, Parents' Election To Report Child's Interest and Dividends, for this purpose. Download 1040ez federal tax form   For more information about the tax on unearned income of children and the parents' election, see chapter 31. Download 1040ez federal tax form Beneficiary of an estate or trust. 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Download 1040ez federal tax form For more information on SSNs and ITINs, see Social Security Number (SSN) in chapter 1. Download 1040ez federal tax form Backup withholding. Download 1040ez federal tax form   Your dividend income is generally not subject to regular withholding. Download 1040ez federal tax form However, it may be subject to backup withholding to ensure that income tax is collected on the income. Download 1040ez federal tax form Under backup withholding, the payer of dividends must withhold, as income tax, on the amount you are paid, applying the appropriate withholding rate. Download 1040ez federal tax form   Backup withholding may also be required if the IRS has determined that you underreported your interest or dividend income. Download 1040ez federal tax form For more information, see Backup Withholding in chapter 4. Download 1040ez federal tax form Stock certificate in two or more names. Download 1040ez federal tax form   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. Download 1040ez federal tax form Form 1099-DIV. Download 1040ez federal tax form   Most corporations and mutual funds use Form 1099-DIV, Dividends and Distributions, to show you the distributions you received from them during the year. Download 1040ez federal tax form Keep this form with your records. Download 1040ez federal tax form You do not have to attach it to your tax return. Download 1040ez federal tax form Dividends not reported on Form 1099-DIV. Download 1040ez federal tax form   Even if you do not receive Form 1099-DIV, you must still report all your taxable dividend income. Download 1040ez federal tax form For example, you may receive distributive shares of dividends from partnerships or S corporations. 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Download 1040ez federal tax form   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. Download 1040ez federal tax form See Reporting Substitute Payments under Short Sales in chapter 4 of Publication 550 for more information about reporting these payments. Download 1040ez federal tax form Incorrect amount shown on a Form 1099. Download 1040ez federal tax form   If you receive a Form 1099 that shows an incorrect amount (or other incorrect information), you should ask the issuer for a corrected form. Download 1040ez federal tax form The new Form 1099 you receive will be marked “Corrected. Download 1040ez federal tax form ” Dividends on stock sold. Download 1040ez federal tax form   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. Download 1040ez federal tax form Dividends received in January. Download 1040ez federal tax form   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. Download 1040ez federal tax form You report the dividend in the year it was declared. Download 1040ez federal tax form Ordinary Dividends Ordinary (taxable) dividends are the most common type of distribution from a corporation or a mutual fund. Download 1040ez federal tax form They are paid out of earnings and profits and are ordinary income to you. Download 1040ez federal tax form This means they are not capital gains. Download 1040ez federal tax form 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. Download 1040ez federal tax form Ordinary dividends will be shown in box 1a of the Form 1099-DIV you receive. Download 1040ez federal tax form 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. Download 1040ez federal tax form They should be shown in box 1b of the Form 1099-DIV you receive. 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Download 1040ez federal tax form   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. Download 1040ez federal tax form If the preferred dividends are due to periods totaling less than 367 days, the holding period in the previous paragraph applies. Download 1040ez federal tax form Example 1. Download 1040ez federal tax form You bought 5,000 shares of XYZ Corp. Download 1040ez federal tax form common stock on July 9, 2013. Download 1040ez federal tax form XYZ Corp. Download 1040ez federal tax form paid a cash dividend of 10 cents per share. Download 1040ez federal tax form The ex-dividend date was July 16, 2013. Download 1040ez federal tax form Your Form 1099-DIV from XYZ Corp. Download 1040ez federal tax form shows $500 in box 1a (ordinary dividends) and in box 1b (qualified dividends). 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Download 1040ez federal tax form   For information about how to apply condition (3), see Regulations section 1. Download 1040ez federal tax form 246-5. Download 1040ez federal tax form Qualified foreign corporation. Download 1040ez federal tax form   A foreign corporation is a qualified foreign corporation if it meets any of the following conditions. Download 1040ez federal tax form The corporation is incorporated in a U. Download 1040ez federal tax form S. Download 1040ez federal tax form possession. Download 1040ez federal tax form 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. Download 1040ez federal tax form For a list of those treaties, see Table 8-1. Download 1040ez federal tax form 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. Download 1040ez federal tax form See Readily tradable stock , later. Download 1040ez federal tax form Exception. Download 1040ez federal tax form   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. Download 1040ez federal tax form Readily tradable stock. Download 1040ez federal tax form   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. Download 1040ez federal tax form For a list of the exchanges that meet these requirements, see www. Download 1040ez federal tax form sec. Download 1040ez federal tax form gov/divisions/marketreg/mrexchanges. Download 1040ez federal tax form shtml. Download 1040ez federal tax form Dividends that are not qualified dividends. Download 1040ez federal tax form   The following dividends are not qualified dividends. Download 1040ez federal tax form They are not qualified dividends even if they are shown in box 1b of Form 1099-DIV. Download 1040ez federal tax form Capital gain distributions. Download 1040ez federal tax form Dividends paid on deposits with mutual savings banks, cooperative banks, credit unions, U. Download 1040ez federal tax form S. Download 1040ez federal tax form building and loan associations, U. Download 1040ez federal tax form S. Download 1040ez federal tax form savings and loan associations, federal savings and loan associations, and similar financial institutions. Download 1040ez federal tax form (Report these amounts as interest income. Download 1040ez federal tax form ) 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. Download 1040ez federal tax form 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. Download 1040ez federal tax form 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. Download 1040ez federal tax form Payments in lieu of dividends, but only if you know or have reason to know the payments are not qualified dividends. 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Download 1040ez federal tax form 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. Download 1040ez federal tax form 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. 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Download 1040ez federal tax form Instead, they are reported to you in box 1a of Form 2439. Download 1040ez federal tax form   Report undistributed capital gains (box 1a of Form 2439) as long-term capital gains on Schedule D (Form 1040), column (h), line 11. Download 1040ez federal tax form   The tax paid on these gains by the mutual fund or REIT is shown in box 2 of Form 2439. Download 1040ez federal tax form You take credit for this tax by including it on Form 1040, line 71, and checking box a on that line. Download 1040ez federal tax form Attach Copy B of Form 2439 to your return, and keep Copy C for your records. Download 1040ez federal tax form Basis adjustment. Download 1040ez federal tax form   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. Download 1040ez federal tax form Additional information. 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Download 1040ez federal tax form This nontaxable portion is also called a return of capital; it is a return of your investment in the stock of the company. Download 1040ez federal tax form 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. Download 1040ez federal tax form   When the basis of your stock has been reduced to zero, report any additional nondividend distribution you receive as a capital gain. Download 1040ez federal tax form Whether you report it as a long-term or short-term capital gain depends on how long you have held the stock. Download 1040ez federal tax form See Holding Period in chapter 14. Download 1040ez federal tax form Example. Download 1040ez federal tax form You bought stock in 2000 for $100. Download 1040ez federal tax form In 2003, you received a nondividend distribution of $80. 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Download 1040ez federal tax form   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. Download 1040ez federal tax form You must include its fair market value in income on the date you receive it. Download 1040ez federal tax form Other Distributions You may receive any of the following distributions during the year. Download 1040ez federal tax form Exempt-interest dividends. Download 1040ez federal tax form   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. Download 1040ez federal tax form Exempt-interest dividends should be shown in box 10 of Form 1099-DIV. Download 1040ez federal tax form Information reporting requirement. Download 1040ez federal tax form   Although exempt-interest dividends are not taxable, you must show them on your tax return if you have to file a return. Download 1040ez federal tax form This is an information reporting requirement and does not change the exempt-interest dividends to taxable income. Download 1040ez federal tax form Alternative minimum tax treatment. Download 1040ez federal tax form   Exempt-interest dividends paid from specified private activity bonds may be subject to the alternative minimum tax. Download 1040ez federal tax form See Alternative Minimum Tax (AMT) in chapter 30 for more information. Download 1040ez federal tax form Dividends on insurance policies. Download 1040ez federal tax form    Insurance policy dividends the insurer keeps and uses to pay your premiums are not taxable. Download 1040ez federal tax form However, you must report as taxable interest income the interest that is paid or credited on dividends left with the insurance company. Download 1040ez federal tax form    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. Download 1040ez federal tax form Do not include them in your gross income until they are more than the total of all net premiums you paid for the contract. Download 1040ez federal tax form Report any taxable distributions on insurance policies on Form 1040, line 21. Download 1040ez federal tax form Dividends on veterans' insurance. Download 1040ez federal tax form   Dividends you receive on veterans' insurance policies are not taxable. Download 1040ez federal tax form In addition, interest on dividends left with the Department of Veterans Affairs is not taxable. Download 1040ez federal tax form Patronage dividends. Download 1040ez federal tax form   Generally, patronage dividends you receive in money from a cooperative organization are included in your income. Download 1040ez federal tax form   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. Download 1040ez federal tax form But you must reduce the basis (cost) of the items bought. Download 1040ez federal tax form If the dividend is more than the adjusted basis of the assets, you must report the excess as income. Download 1040ez federal tax form   These rules are the same whether the cooperative paying the dividend is a taxable or tax-exempt cooperative. Download 1040ez federal tax form Alaska Permanent Fund dividends. Download 1040ez federal tax form    Do not report these amounts as dividends. Download 1040ez federal tax form Instead, report these amounts on Form 1040, line 21; Form 1040A, line 13; or Form 1040EZ, line 3. Download 1040ez federal tax form How To Report Dividend Income Generally, you can use either Form 1040 or Form 1040A to report your dividend income. Download 1040ez federal tax form Report the total of your ordinary dividends on line 9a of Form 1040 or Form 1040A. Download 1040ez federal tax form Report qualified dividends on line 9b of Form 1040 or Form 1040A. Download 1040ez federal tax form If you receive capital gain distributions, you may be able to use Form 1040A or you may have to use Form 1040. Download 1040ez federal tax form See Exceptions to filing Form 8949 and Schedule D (Form 1040) in chapter 16. Download 1040ez federal tax form If you receive nondividend distributions required to be reported as capital gains, you must use Form 1040. Download 1040ez federal tax form You cannot use Form 1040EZ if you receive any dividend income. Download 1040ez federal tax form Form 1099-DIV. Download 1040ez federal tax form   If you owned stock on which you received $10 or more in dividends and other distributions, you should receive a Form 1099-DIV. Download 1040ez federal tax form Even if you do not receive Form 1099-DIV, you must report all your dividend income. Download 1040ez federal tax form   See Form 1099-DIV for more information on how to report dividend income. Download 1040ez federal tax form Form 1040A or 1040. Download 1040ez federal tax form    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. Download 1040ez federal tax form If your ordinary dividends are more than $1,500, you must also complete Schedule B (Form 1040A or 1040), Part III. Download 1040ez federal tax form   List on Schedule B (Form 1040A or 1040), Part II, line 5, each payer's name and the ordinary dividends you received. Download 1040ez federal tax form 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. Download 1040ez federal tax form 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. Download 1040ez federal tax form   Enter on line 6 the total of the amounts listed on line 5. Download 1040ez federal tax form Also enter this total on line 9a of Form 1040A or 1040. Download 1040ez federal tax form Qualified dividends. Download 1040ez federal tax form   Report qualified dividends (Form 1099-DIV, box 1b) on line 9b of Form 1040 or Form 1040A. Download 1040ez federal tax form The amount in box 1b is already included in box 1a. Download 1040ez federal tax form Do not add the amount in box 1b to, or substract it from, the amount in box 1a. Download 1040ez federal tax form   Do not include any of the following on line 9b. Download 1040ez federal tax form Qualified dividends you received as a nominee. Download 1040ez federal tax form See Nominees under How to Report Dividend Income in chapter 1 of Publication 550. Download 1040ez federal tax form Dividends on stock for which you did not meet the holding period. Download 1040ez federal tax form See Holding period , earlier under Qualified Dividends. Download 1040ez federal tax form 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. Download 1040ez federal tax form Payments in lieu of dividends, but only if you know or have reason to know the payments are not qualified dividends. Download 1040ez federal tax form 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. Download 1040ez federal tax form   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. Download 1040ez federal tax form Enter qualified dividends on line 2 of the worksheet. Download 1040ez federal tax form Investment interest deducted. Download 1040ez federal tax form   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. Download 1040ez federal tax form Reduce it by the qualified dividends you choose to include in investment income when figuring the limit on your investment interest deduction. Download 1040ez federal tax form This is done on the Qualified Dividends and Capital Gain Tax Worksheet or the Schedule D Tax Worksheet. Download 1040ez federal tax form For more information about the limit on investment interest, see Investment expenses in chapter 23. Download 1040ez federal tax form Expenses related to dividend income. Download 1040ez federal tax form   You may be able to deduct expenses related to dividend income if you itemize your deductions on Schedule A (Form 1040). Download 1040ez federal tax form See chapter 28 for general information about deducting expenses of producing income. Download 1040ez federal tax form More information. Download 1040ez federal tax form    For more information about how to report dividend income, see chapter 1 of Publication 550 or the instructions for the form you must file. Download 1040ez federal tax form Prev  Up  Next   Home   More Online Publications
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New Tax Guide Helps People With Their 2013 Taxes

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IR-2013-102, Dec. 23, 2013

WASHINGTON — Taxpayers can get the most out of various tax benefits and get a jump on preparing their 2013 federal income tax returns by consulting a newly revised comprehensive tax guide now available on IRS.gov.

Publication 17, Your Federal Income Tax, features details on taking advantage of a wide range of tax-saving opportunities, such as the American Opportunity Tax Credit for parents and college students, and the Child Tax Credit and Earned Income Tax Credit for low- and moderate-income workers. It also features a rundown on tax changes for 2013 including information on revised tax rates and new limits on various tax benefits for some taxpayers.  This useful 292-page guide also provides thousands of interactive links to help taxpayers quickly get answers to their questions.

Publication 17 has been published annually by the IRS since the 1940s and has been available on the IRS web site since 1996. As in prior years, this publication is packed with basic tax-filing information and tips on what income to report and how to report it, figuring capital gains and losses, claiming dependents, choosing the standard deduction versus itemizing deductions, and using IRAs to save for retirement.

Besides Publication 17, IRS.gov offers many other helpful resources for those doing year-end tax planning. Many 2013 forms are already posted, and updated versions of other forms, instructions and publications are being posted almost every day. Forms already available include Form 1040 and short Forms 1040A and1040EZ.

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Page Last Reviewed or Updated: 23-Dec-2013

The Download 1040ez Federal Tax Form

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