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File State Income Tax Online Free

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

File state income tax online free Index A Activities not for profit, Hobby Expenses Adjustments to gross income Armed forces reservists' travel expenses, Armed Forces reservists traveling more than 100 miles from home. File state income tax online free Performing artists, Performing Artists State or local government officials paid on fee basis, Officials Paid on a Fee Basis Unlawful discrimination claims, Unlawful discrimination claims. File state income tax online free Administrative fees IRA trustees, Trustee's Administrative Fees for IRA Adoption expenses, Adoption Expenses Amortizable bond premium, Amortizable Premium on Taxable Bonds, More information. File state income tax online free Appraisal fees, Appraisal Fees Armed forces Military uniforms, Military uniforms. File state income tax online free Reservists, travel expenses, Armed Forces reservists traveling more than 100 miles from home. File state income tax online free Assistance (see Tax help) B Bad debts, Business Bad Debt Bank accounts Check-writing fees, Check-Writing Fees on Personal Account Losses on deposits, Loss on Deposits Bonds Amortizable premium, Amortizable Premium on Taxable Bonds Breach of contract Damages, Damages for Breach of Employment Contract Bribes, List of Nondeductible Expenses Burial expenses, List of Nondeductible Expenses Business expenses (see Employee business expenses) Business gifts, Gift expenses. File state income tax online free C Campaign contributions, Lobbying and political activities. File state income tax online free , Political Contributions Campaign expenses, Campaign Expenses Capital expenditures, Capital Expenses Casualty losses, Casualty and Theft Losses, Casualty and Theft Losses of Income-Producing Property Cell phones, Depreciation on Computers Chambers of Commerce dues, Lobbying and political activities. File state income tax online free Check-writing fees, Check-Writing Fees on Personal Account Claim of right repayments, Repayments Under Claim of Right Clerical help, deductibility of, Clerical Help and Office Rent Clothes Protective, Protective clothing. File state income tax online free Work, Work Clothes and Uniforms Club dues, Club Dues Commissions, Commissions Commuting expenses, Commuting Expenses Computers Depreciation, Depreciation on Computers, Depreciation on Home Computer, Excess Deductions of an Estate Convenience fees, Credit or Debit Card Convenience Fees Criminal prosecutions Travel expenses for federal staff, Federal crime investigation and prosecution. File state income tax online free D Damages Breach of employment contract, Damages for Breach of Employment Contract Deposits Losses on, Loss on Deposits Depreciation Computers, Depreciation on Computers, Depreciation on Home Computer, Excess Deductions of an Estate Disabilities, persons with Work-related expenses, Impairment-Related Work Expenses Dividends Fees to collect, Fees To Collect Interest and Dividends Service charges on reinvestment plans, Service Charges on Dividend Reinvestment Plans Dues, Dues to Chambers of Commerce and Professional Societies (see also Expenses) (see also Fees) Chambers of Commerce, Dues to Chambers of Commerce and Professional Societies Club, Club Dues Lobbying, Dues used for lobbying. File state income tax online free Professional societies, Dues to Chambers of Commerce and Professional Societies Union, Union Dues and Expenses E Education, Educator Expenses, Education Expenses During Unemployment Education expenses, Work-Related Education, More information. File state income tax online free Employee business expenses Form 2106 and Form 2106-EZ, Form 2106 and Form 2106-EZ. File state income tax online free Performing artists, Performing Artists Unreimbursed, Unreimbursed Employee Expenses Employment Agency fees, Employment and outplacement agency fees. File state income tax online free Breach of contract, Damages for Breach of Employment Contract Entertainers and musicians (see Performing artists) Entertainment expenses, Meals and entertainment. File state income tax online free Estates Federal estate tax, Federal Estate Tax on Income in Respect of a Decedent Expenses, Dues to Chambers of Commerce and Professional Societies, Education Expenses During Unemployment (see also Dues) (see also Fees) Adoption, Adoption Expenses Campaign, Campaign Expenses Capital, Capital Expenses Commuting, Commuting Expenses Education Work-related, Work-Related Education Educator, Educator Expenses Qualified, Qualified expenses. File state income tax online free Educator Expenses, Eligible educator. File state income tax online free Employee business (see Employee business expenses) Entertainment, Meals and entertainment. File state income tax online free Funeral and burial, List of Nondeductible Expenses Gifts, Travel, Transportation, Meals, Entertainment, Gifts, and Local Lodging, Gift expenses. File state income tax online free Health spa, Health Spa Expenses Hobby, Hobby Expenses Home office, Home Office Impairment-related, Impairment-Related Work Expenses Investment, Investment Fees and Expenses, Investment-Related Seminars Job search, Job Search Expenses Legal (see Legal expenses) Local lodging, Travel, Transportation, Meals, Entertainment, Gifts, and Local Lodging Meals, Meals and entertainment. File state income tax online free , Lunches With Co-workers Meals and entertainment, Travel, Transportation, Meals, Entertainment, Gifts, and Local Lodging Nondeductible, Nondeductible Expenses Over limit, educator, Educator expenses over limit. File state income tax online free Personal, Nondeductible Expenses Production of income, Other Expenses Professional promotion, Professional Reputation Tax-exempt income, Tax-Exempt Income Expenses Travel and transportation, Travel, Transportation, Meals, Entertainment, Gifts, and Local Lodging Travel as education, Travel as education. File state income tax online free F Federal estate tax, Federal Estate Tax on Income in Respect of a Decedent Fees, Dues to Chambers of Commerce and Professional Societies (see also Dues) (see also Expenses) Appraisal, Appraisal Fees Check-writing, Check-Writing Fees on Personal Account Employment and outplacement agency, Employment and outplacement agency fees. File state income tax online free Investment, Fees To Collect Interest and Dividends, Investment Fees and Expenses IRA trustee, Trustee's Administrative Fees for IRA Legal (see Legal expenses) License, Licenses and Regulatory Fees Professional accreditation, Professional Accreditation Fees Fines, Fines or Penalties Form 2106 Employee business expenses, Form 2106 and Form 2106-EZ. File state income tax online free Form 2106-EZ Employee business expenses, Form 2106 and Form 2106-EZ. File state income tax online free Form 4562 Depreciation and amortization, Reporting your depreciation deduction. File state income tax online free , Depreciation. File state income tax online free , Computer used in a home office. File state income tax online free Free tax services, Free help with your tax return. File state income tax online free Funeral expenses, List of Nondeductible Expenses G Gambling winnings and losses, Gambling Losses Up to the Amount of Gambling Winnings Government employees Federal criminal investigation and prosecution travel expenses, Federal crime investigation and prosecution. File state income tax online free State or local government officials paid on fee basis, Officials Paid on a Fee Basis H Health spa, Health Spa Expenses Help (see Tax help) Hobbies, Hobby Expenses Home Security system, Home Security System Telephone service, Residential Telephone Service Home office Computers, Computer used in a home office. File state income tax online free Expenses, Home Office Principal place of business, Principal place of business. File state income tax online free Travel and transportation expenses, Home office. File state income tax online free I Impairment-related work expenses, Impairment-Related Work Expenses Income aid payment, Repayment of Income Aid Payment Income in respect of decedent Estate tax, Federal Estate Tax on Income in Respect of a Decedent Individual retirement arrangements (IRAs) Trustees' fees, Trustee's Administrative Fees for IRA Insurance Business liability, Business Liability Insurance Life insurance, Life Insurance Premiums Malpractice, Unreimbursed Employee Expenses Personal disability, List of Nondeductible Expenses Interest income Fees to collect, Fees To Collect Interest and Dividends Investments Annuity, unrecovered investment in, Unrecovered Investment in Annuity Deposits, losses on, Loss on Deposits Fees and expenses, Investment Fees and Expenses Seminars, Investment-Related Seminars Itemized deductions Deductions not subject to 2% limit, Deductions Not Subject to the 2% Limit Deductions subject to 2% limit, Introduction, Deductions Subject to the 2% Limit How to report, How To Report J Job search, Job Search Expenses, Travel and transportation expenses. File state income tax online free K Kickbacks, List of Nondeductible Expenses L Legal expenses Job-related, Legal Fees Personal, Personal Legal Expenses Political campaigns, Legal fees. File state income tax online free Production of income, Legal Expenses Unlawful discrimination claims, Legal Expenses Licenses Fees, Licenses and Regulatory Fees Life insurance, Life Insurance Premiums Lobbying, Lobbying and political activities. File state income tax online free , Lobbying Expenses, Exceptions. File state income tax online free Local transportation, Local transportation expenses. File state income tax online free Losses Casualties and thefts, Casualty and Theft Losses, Casualty and Theft Losses of Income-Producing Property Deposits, Loss on Deposits Gambling, Gambling Losses Up to the Amount of Gambling Winnings IRA, Loss on IRA Mislaid cash or property, Lost or Mislaid Cash or Property Partnership, Loss From Other Activities From Schedule K-1 (Form 1065-B), Box 2 Roth IRA, Loss on IRA M Mail carriers, rural, Rural Mail Carriers' Vehicle Expenses Malpractice insurance, Unreimbursed Employee Expenses Meal and lodging expenses, Meals and entertainment. File state income tax online free Lunches with coworkers, Lunches With Co-workers Working late, Meals While Working Late Medical examinations, Unreimbursed Employee Expenses Mileage rate, What's New Missing children, photographs of, Reminders Mutual funds Indirect deductions, Indirect Deductions of Pass-Through Entities N Nondeductible expenses, Nondeductible Expenses, Wristwatches Not-for-profit activities, Hobby Expenses O Occupational taxes, Occupational Taxes Office Home (see Home office) Rent, Clerical Help and Office Rent Outplacement agency fees, Employment and outplacement agency fees. File state income tax online free P Partnerships Indirect deductions, Indirect Deductions of Pass-Through Entities Pass-through entities, Indirect Deductions of Pass-Through Entities Passport expense, Unreimbursed Employee Expenses Penalties, Fines or Penalties Performing artists, Performing Artists Work clothes, Work Clothes and Uniforms Personal expenses, Nondeductible Expenses, Wristwatches Political contributions, Lobbying and political activities. File state income tax online free , Political Contributions Campaign expenses, Campaign Expenses Ponzi-type investment schemes, Losses From Ponzi-type Investment Schemes Postal workers, Rural Mail Carriers' Vehicle Expenses Production of income expenses, Other Expenses, Loss on IRA Professional accreditation fees, Professional Accreditation Fees Professional journals, Unreimbursed Employee Expenses Professional reputation and marketing, Professional Reputation Professional societies dues, Lobbying and political activities. File state income tax online free Prosecution travel expenses, Federal crime investigation and prosecution. File state income tax online free Protective clothing, Protective clothing. File state income tax online free Publications (see Tax help) R Recordkeeping requirements Computer used for home and business, Depreciation on Computers Deductions, to verify, Introduction Gambling winnings and losses, Gambling Losses Up to the Amount of Gambling Winnings Home office, Home Office Relief fund contributions, Relief Fund Contributions Rent Office, Clerical Help and Office Rent Safe deposit box, Safe Deposit Box Rent Repayments Claim of right, Repayments Under Claim of Right Income, Repayments of Income Income aid payments, Unreimbursed Employee Expenses Social Security benefits, Repayments of Social Security Benefits Reporting requirements Armed Forces reservists, Armed Forces reservists. File state income tax online free Computer used in a home office, Computer used in a home office. File state income tax online free Depreciation, Depreciation. File state income tax online free Form 2106 and Form 2106-EZ, Form 2106 and Form 2106-EZ. File state income tax online free Impairment-related work expenses, Impairment-related work expenses. File state income tax online free Itemized deductions, How To Report Tax preparation fees, Tax preparation fees. File state income tax online free Research expenses, Research Expenses of a College Professor Résumé, Résumé. File state income tax online free Rural mail carriers, Rural Mail Carriers' Vehicle Expenses S S corporations Indirect deductions, Indirect Deductions of Pass-Through Entities Safe deposit box, Safe Deposit Box Rent Security systems, home, Home Security System Seminars, investment-related, Investment-Related Seminars Service charges on dividend reinvestment plans, Service Charges on Dividend Reinvestment Plans Social Security repayments, Repayments of Social Security Benefits State or local governments Officials paid on fee basis, Officials Paid on a Fee Basis Stockholders' meeting expenses, Stockholders' Meetings T Tax help, How To Get Tax Help Tax-exempt income expenses, Tax-Exempt Income Expenses Taxes Estate tax, Federal Estate Tax on Income in Respect of a Decedent Occupational, Occupational Taxes Telephones Cell phone, Depreciation on Computers Residential service, Residential Telephone Service Theft losses, Casualty and Theft Losses, Casualty and Theft Losses of Income-Producing Property Tools, Tools Used in Your Work Travel and transportation expenses, Local lodging. File state income tax online free , Additional information. File state income tax online free Another individual, paid by taxpayer, Travel Expenses for Another Individual Armed forces reservists, Armed Forces reservists traveling more than 100 miles from home. File state income tax online free Commuting, Commuting Expenses Criminal investigations and prosecutions, Federal crime investigation and prosecution. File state income tax online free Education, Travel as education. File state income tax online free Indefinite work assignments, Indefinite work assignment. File state income tax online free Job search, Travel and transportation expenses. File state income tax online free Local transportation, Local transportation expenses. File state income tax online free Research, Research Expenses of a College Professor Temporary work assignments, Temporary work assignment. File state income tax online free Trustees IRA administrative fees, Trustee's Administrative Fees for IRA TTY/TDD information, How To Get Tax Help U Unemployment and education expenses, Education Expenses During Unemployment Unemployment benefit fund contributions, Voluntary Unemployment Benefit Fund Contributions Uniforms, military, Military uniforms. File state income tax online free Union dues, Union Dues and Expenses Unreimbursed employee expenses, Unreimbursed Employee Expenses, Military uniforms. File state income tax online free W Wagering winnings and losses, Gambling Losses Up to the Amount of Gambling Winnings Work Clothes and uniforms, Work Clothes and Uniforms Impairment-related expenses, Impairment-Related Work Expenses Supplies, Unreimbursed Employee Expenses Tools, Unreimbursed Employee Expenses, Tools Used in Your Work Travel and transportation expenses, Travel, Transportation, Meals, Entertainment, Gifts, and Local Lodging Wristwatches, List of Nondeductible Expenses, Wristwatches Prev  Up     Home   More Online Publications