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Free 1040ez Form

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Free 1040ez Form

Free 1040ez form 8. Free 1040ez 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. Free 1040ez form Reporting tax withheld. Free 1040ez form Nominees. Free 1040ez form Ordinary DividendsQualified Dividends Dividends Used to Buy More Stock Money Market Funds Capital Gain DistributionsBasis adjustment. Free 1040ez form Nondividend DistributionsLiquidating Distributions Distributions of Stock and Stock Rights Other DistributionsInformation reporting requirement. Free 1040ez form Alternative minimum tax treatment. Free 1040ez form How To Report Dividend IncomeInvestment interest deducted. Free 1040ez form Reminder Foreign-source income. Free 1040ez form  If you are a U. Free 1040ez form S. Free 1040ez 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. Free 1040ez form S. Free 1040ez form law. Free 1040ez 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. Free 1040ez 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. Free 1040ez form This chapter also explains how to report dividend income on your tax return. Free 1040ez form Dividends are distributions of money, stock, or other property paid to you by a corporation or by a mutual fund. Free 1040ez form You also may receive dividends through a partnership, an estate, a trust, or an association that is taxed as a corporation. Free 1040ez form However, some amounts you receive that are called dividends are actually interest income. Free 1040ez form (See Dividends that are actually interest under Taxable Interest in chapter 7. Free 1040ez form ) Most distributions are paid in cash (or check). Free 1040ez form However, distributions can consist of more stock, stock rights, other property, or services. Free 1040ez 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. Free 1040ez form Tax on unearned income of certain children. Free 1040ez form   Part of a child's 2013 unearned income may be taxed at the parent's tax rate. Free 1040ez 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. Free 1040ez form If not, Form 8615 is not required and the child's income is taxed at his or her own tax rate. Free 1040ez form    Some parents can choose to include the child's interest and dividends on the parent's return if certain requirements are met. Free 1040ez form Use Form 8814, Parents' Election To Report Child's Interest and Dividends, for this purpose. Free 1040ez form   For more information about the tax on unearned income of children and the parents' election, see chapter 31. Free 1040ez form Beneficiary of an estate or trust. Free 1040ez form    Dividends and other distributions you receive as a beneficiary of an estate or trust are generally taxable income. Free 1040ez form You should receive a Schedule K-1 (Form 1041), Beneficiary's Share of Income, Deductions, Credits, etc. Free 1040ez form , from the fiduciary. Free 1040ez form Your copy of Schedule K-1 (Form 1041) and its instructions will tell you where to report the income on your Form 1040. Free 1040ez form Social security number (SSN) or individual taxpayer identification number (ITIN). Free 1040ez form    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. Free 1040ez form This includes payers of dividends. Free 1040ez form If you do not give your SSN or ITIN to the payer of dividends, you may have to pay a penalty. Free 1040ez form For more information on SSNs and ITINs, see Social Security Number (SSN) in chapter 1. Free 1040ez form Backup withholding. Free 1040ez form   Your dividend income is generally not subject to regular withholding. Free 1040ez form However, it may be subject to backup withholding to ensure that income tax is collected on the income. Free 1040ez form Under backup withholding, the payer of dividends must withhold, as income tax, on the amount you are paid, applying the appropriate withholding rate. Free 1040ez form   Backup withholding may also be required if the IRS has determined that you underreported your interest or dividend income. Free 1040ez form For more information, see Backup Withholding in chapter 4. Free 1040ez form Stock certificate in two or more names. Free 1040ez 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. Free 1040ez form Form 1099-DIV. Free 1040ez 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. Free 1040ez form Keep this form with your records. Free 1040ez form You do not have to attach it to your tax return. Free 1040ez form Dividends not reported on Form 1099-DIV. Free 1040ez form   Even if you do not receive Form 1099-DIV, you must still report all your taxable dividend income. Free 1040ez form For example, you may receive distributive shares of dividends from partnerships or S corporations. Free 1040ez form These dividends are reported to you on Schedule K-1 (Form 1065), Partner's Share of Income, Deductions, Credits, etc. Free 1040ez form , and Schedule K-1 (Form 1120S), Shareholder's Share of Income, Deductions, Credits, etc. Free 1040ez form Reporting tax withheld. Free 1040ez form   If tax is withheld from your dividend income, the payer must give you a Form 1099-DIV that indicates the amount withheld. Free 1040ez form Nominees. Free 1040ez form   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. Free 1040ez form Form 1099-MISC. Free 1040ez 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. Free 1040ez form See Reporting Substitute Payments under Short Sales in chapter 4 of Publication 550 for more information about reporting these payments. Free 1040ez form Incorrect amount shown on a Form 1099. Free 1040ez 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. Free 1040ez form The new Form 1099 you receive will be marked “Corrected. Free 1040ez form ” Dividends on stock sold. Free 1040ez 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. Free 1040ez form Dividends received in January. Free 1040ez 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. Free 1040ez form You report the dividend in the year it was declared. Free 1040ez form Ordinary Dividends Ordinary (taxable) dividends are the most common type of distribution from a corporation or a mutual fund. Free 1040ez form They are paid out of earnings and profits and are ordinary income to you. Free 1040ez form This means they are not capital gains. Free 1040ez 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. Free 1040ez form Ordinary dividends will be shown in box 1a of the Form 1099-DIV you receive. Free 1040ez 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. Free 1040ez form They should be shown in box 1b of the Form 1099-DIV you receive. Free 1040ez form The maximum rate of tax on qualified dividends is: 0% on any amount that otherwise would be taxed at a 10% or 15% rate. Free 1040ez form 15% on any amount that otherwise would be taxed at rates greater than 15% but less than 39. Free 1040ez form 6%. Free 1040ez form 20% on any amount that otherwise would be taxed at a 39. Free 1040ez form 6% rate. Free 1040ez form To qualify for the maximum rate, all of the following requirements must be met. Free 1040ez form The dividends must have been paid by a U. Free 1040ez form S. Free 1040ez form corporation or a qualified foreign corporation. Free 1040ez form (See Qualified foreign corporation , later. Free 1040ez form ) The dividends are not of the type listed later under Dividends that are not qualified dividends . Free 1040ez form You meet the holding period (discussed next). Free 1040ez form Holding period. Free 1040ez form   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. Free 1040ez form 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. Free 1040ez form Instead, the seller will get the dividend. Free 1040ez form   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. Free 1040ez form See the examples later. Free 1040ez form Exception for preferred stock. Free 1040ez 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. Free 1040ez form If the preferred dividends are due to periods totaling less than 367 days, the holding period in the previous paragraph applies. Free 1040ez form Example 1. Free 1040ez form You bought 5,000 shares of XYZ Corp. Free 1040ez form common stock on July 9, 2013. Free 1040ez form XYZ Corp. Free 1040ez form paid a cash dividend of 10 cents per share. Free 1040ez form The ex-dividend date was July 16, 2013. Free 1040ez form Your Form 1099-DIV from XYZ Corp. Free 1040ez form shows $500 in box 1a (ordinary dividends) and in box 1b (qualified dividends). Free 1040ez form However, you sold the 5,000 shares on August 12, 2013. Free 1040ez form You held your shares of XYZ Corp. Free 1040ez form for only 34 days of the 121-day period (from July 10, 2013, through August 12, 2013). Free 1040ez form The 121-day period began on May 17, 2013 (60 days before the ex-dividend date), and ended on September 14, 2013. Free 1040ez form You have no qualified dividends from XYZ Corp. Free 1040ez form because you held the XYZ stock for less than 61 days. Free 1040ez form Example 2. Free 1040ez form 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. Free 1040ez form You held the stock for 63 days (from July 16, 2013, through September 16, 2013). Free 1040ez form 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). Free 1040ez form Example 3. Free 1040ez form You bought 10,000 shares of ABC Mutual Fund common stock on July 9, 2013. Free 1040ez form ABC Mutual Fund paid a cash dividend of 10 cents a share. Free 1040ez form The ex-dividend date was July 16, 2013. Free 1040ez form The ABC Mutual Fund advises you that the portion of the dividend eligible to be treated as qualified dividends equals 2 cents per share. Free 1040ez form Your Form 1099-DIV from ABC Mutual Fund shows total ordinary dividends of $1,000 and qualified dividends of $200. Free 1040ez form However, you sold the 10,000 shares on August 12, 2013. Free 1040ez form You have no qualified dividends from ABC Mutual Fund because you held the ABC Mutual Fund stock for less than 61 days. Free 1040ez form Holding period reduced where risk of loss is diminished. Free 1040ez form   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. Free 1040ez form 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. Free 1040ez form You were grantor (writer) of an option to buy substantially identical stock or securities. Free 1040ez form Your risk of loss is diminished by holding one or more other positions in substantially similar or related property. Free 1040ez form   For information about how to apply condition (3), see Regulations section 1. Free 1040ez form 246-5. Free 1040ez form Qualified foreign corporation. Free 1040ez form   A foreign corporation is a qualified foreign corporation if it meets any of the following conditions. Free 1040ez form The corporation is incorporated in a U. Free 1040ez form S. Free 1040ez form possession. Free 1040ez 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. Free 1040ez form For a list of those treaties, see Table 8-1. Free 1040ez 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. Free 1040ez form See Readily tradable stock , later. Free 1040ez form Exception. Free 1040ez 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. Free 1040ez form Readily tradable stock. Free 1040ez 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. Free 1040ez form For a list of the exchanges that meet these requirements, see www. Free 1040ez form sec. Free 1040ez form gov/divisions/marketreg/mrexchanges. Free 1040ez form shtml. Free 1040ez form Dividends that are not qualified dividends. Free 1040ez form   The following dividends are not qualified dividends. Free 1040ez form They are not qualified dividends even if they are shown in box 1b of Form 1099-DIV. Free 1040ez form Capital gain distributions. Free 1040ez form Dividends paid on deposits with mutual savings banks, cooperative banks, credit unions, U. Free 1040ez form S. Free 1040ez form building and loan associations, U. Free 1040ez form S. Free 1040ez form savings and loan associations, federal savings and loan associations, and similar financial institutions. Free 1040ez form (Report these amounts as interest income. Free 1040ez 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. Free 1040ez 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. Free 1040ez 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. Free 1040ez form Payments in lieu of dividends, but only if you know or have reason to know the payments are not qualified dividends. Free 1040ez 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. Free 1040ez form Table 8-1. Free 1040ez form Income Tax Treaties Income tax treaties the United States has with the following countries satisfy requirement (2) under Qualified foreign corporation. Free 1040ez 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. Free 1040ez 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. Free 1040ez form Most mutual funds also permit shareholders to automatically reinvest distributions in more shares in the fund, instead of receiving cash. Free 1040ez form 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. Free 1040ez form 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. Free 1040ez form 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. Free 1040ez form But you may be able to deduct the service charge. Free 1040ez form See chapter 28 for more information about deducting expenses of producing income. Free 1040ez form In some dividend reinvestment plans, you can invest more cash to buy shares of stock at a price less than fair market value. Free 1040ez form 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. Free 1040ez form When figuring this amount, use the fair market value of the stock on the dividend payment date. Free 1040ez form Money Market Funds Report amounts you receive from money market funds as dividend income. Free 1040ez form Money market funds are a type of mutual fund and should not be confused with bank money market accounts that pay interest. Free 1040ez form 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). Free 1040ez form They will be shown in box 2a of the Form 1099-DIV you receive from the mutual fund or REIT. Free 1040ez form Report capital gain distributions as long-term capital gains, regardless of how long you owned your shares in the mutual fund or REIT. Free 1040ez form Undistributed capital gains of mutual funds and REITs. Free 1040ez form    Some mutual funds and REITs keep their long-term capital gains and pay tax on them. Free 1040ez form You must treat your share of these gains as distributions, even though you did not actually receive them. Free 1040ez form However, they are not included on Form 1099-DIV. Free 1040ez form Instead, they are reported to you in box 1a of Form 2439. Free 1040ez form   Report undistributed capital gains (box 1a of Form 2439) as long-term capital gains on Schedule D (Form 1040), column (h), line 11. Free 1040ez form   The tax paid on these gains by the mutual fund or REIT is shown in box 2 of Form 2439. Free 1040ez form You take credit for this tax by including it on Form 1040, line 71, and checking box a on that line. Free 1040ez form Attach Copy B of Form 2439 to your return, and keep Copy C for your records. Free 1040ez form Basis adjustment. Free 1040ez 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. Free 1040ez form Additional information. Free 1040ez form   For more information on the treatment of distributions from mutual funds, see Publication 550. Free 1040ez form 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. Free 1040ez form You should receive a Form 1099-DIV or other statement showing the nondividend distribution. Free 1040ez form On Form 1099-DIV, a nondividend distribution will be shown in box 3. Free 1040ez form If you do not receive such a statement, you report the distribution as an ordinary dividend. Free 1040ez form Basis adjustment. Free 1040ez form   A nondividend distribution reduces the basis of your stock. Free 1040ez form It is not taxed until your basis in the stock is fully recovered. Free 1040ez form This nontaxable portion is also called a return of capital; it is a return of your investment in the stock of the company. Free 1040ez 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. Free 1040ez form   When the basis of your stock has been reduced to zero, report any additional nondividend distribution you receive as a capital gain. Free 1040ez form Whether you report it as a long-term or short-term capital gain depends on how long you have held the stock. Free 1040ez form See Holding Period in chapter 14. Free 1040ez form Example. Free 1040ez form You bought stock in 2000 for $100. Free 1040ez form In 2003, you received a nondividend distribution of $80. Free 1040ez form You did not include this amount in your income, but you reduced the basis of your stock to $20. Free 1040ez form You received a nondividend distribution of $30 in 2013. Free 1040ez form The first $20 of this amount reduced your basis to zero. Free 1040ez form You report the other $10 as a long-term capital gain for 2013. Free 1040ez form You must report as a long-term capital gain any nondividend distribution you receive on this stock in later years. Free 1040ez form Liquidating Distributions Liquidating distributions, sometimes called liquidating dividends, are distributions you receive during a partial or complete liquidation of a corporation. Free 1040ez form These distributions are, at least in part, one form of a return of capital. Free 1040ez form They may be paid in one or more installments. Free 1040ez form You will receive Form 1099-DIV from the corporation showing you the amount of the liquidating distribution in box 8 or 9. Free 1040ez form For more information on liquidating distributions, see chapter 1 of Publication 550. Free 1040ez form Distributions of Stock and Stock Rights Distributions by a corporation of its own stock are commonly known as stock dividends. Free 1040ez form Stock rights (also known as “stock options”) are distributions by a corporation of rights to acquire the corporation's stock. Free 1040ez form Generally, stock dividends and stock rights are not taxable to you, and you do not report them on your return. Free 1040ez form Taxable stock dividends and stock rights. Free 1040ez form   Distributions of stock dividends and stock rights are taxable to you if any of the following apply. Free 1040ez form You or any other shareholder have the choice to receive cash or other property instead of stock or stock rights. Free 1040ez form 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. Free 1040ez form The distribution is in convertible preferred stock and has the same result as in (2). Free 1040ez form The distribution gives preferred stock to some common stock shareholders and common stock to other common stock shareholders. Free 1040ez form The distribution is on preferred stock. Free 1040ez form (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. Free 1040ez form )   The term “stock” includes rights to acquire stock, and the term “shareholder” includes a holder of rights or of convertible securities. Free 1040ez form If you receive taxable stock dividends or stock rights, include their fair market value at the time of distribution in your income. Free 1040ez form Preferred stock redeemable at a premium. Free 1040ez form   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. Free 1040ez form For more information, see chapter 1 of Publication 550. Free 1040ez form Basis. Free 1040ez form   Your basis in stock or stock rights received in a taxable distribution is their fair market value when distributed. Free 1040ez form 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. Free 1040ez form Fractional shares. Free 1040ez form    You may not own enough stock in a corporation to receive a full share of stock if the corporation declares a stock dividend. Free 1040ez form 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. Free 1040ez form Any cash you receive for fractional shares under such a plan is treated as an amount realized on the sale of the fractional shares. Free 1040ez form Report this transaction on Form 8949, Sales and Other Dispositions of Capital Assets. Free 1040ez form 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. Free 1040ez form    Report these transactions on Form 8949 with the correct box checked. Free 1040ez form   For more information on Form 8949 and Schedule D (Form 1040), see chapter 4 of Publication 550. Free 1040ez form Also see the Instructions for Form 8949 and the Instructions for Schedule D (Form 1040). Free 1040ez form Example. Free 1040ez form You own one share of common stock that you bought on January 3, 2004, for $100. Free 1040ez form The corporation declared a common stock dividend of 5% on June 29, 2013. Free 1040ez form The fair market value of the stock at the time the stock dividend was declared was $200. Free 1040ez form You were paid $10 for the fractional-share stock dividend under a plan described in the discussion above. Free 1040ez form You figure your gain or loss as follows: Fair market value of old stock $200. Free 1040ez form 00 Fair market value of stock dividend (cash received) +10. Free 1040ez form 00 Fair market value of old stock and stock dividend $210. Free 1040ez form 00 Basis (cost) of old stock after the stock dividend (($200 ÷ $210) × $100) $95. Free 1040ez form 24 Basis (cost) of stock dividend (($10 ÷ $210) × $100) + 4. Free 1040ez form 76 Total $100. Free 1040ez form 00 Cash received $10. Free 1040ez form 00 Basis (cost) of stock dividend − 4. Free 1040ez form 76 Gain $5. Free 1040ez form 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. Free 1040ez form Scrip dividends. Free 1040ez form   A corporation that declares a stock dividend may issue you a scrip certificate that entitles you to a fractional share. Free 1040ez form The certificate is generally nontaxable when you receive it. Free 1040ez form 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. Free 1040ez 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. Free 1040ez form You must include its fair market value in income on the date you receive it. Free 1040ez form Other Distributions You may receive any of the following distributions during the year. Free 1040ez form Exempt-interest dividends. Free 1040ez 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. Free 1040ez form Exempt-interest dividends should be shown in box 10 of Form 1099-DIV. Free 1040ez form Information reporting requirement. Free 1040ez form   Although exempt-interest dividends are not taxable, you must show them on your tax return if you have to file a return. Free 1040ez form This is an information reporting requirement and does not change the exempt-interest dividends to taxable income. Free 1040ez form Alternative minimum tax treatment. Free 1040ez form   Exempt-interest dividends paid from specified private activity bonds may be subject to the alternative minimum tax. Free 1040ez form See Alternative Minimum Tax (AMT) in chapter 30 for more information. Free 1040ez form Dividends on insurance policies. Free 1040ez form    Insurance policy dividends the insurer keeps and uses to pay your premiums are not taxable. Free 1040ez form However, you must report as taxable interest income the interest that is paid or credited on dividends left with the insurance company. Free 1040ez 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. Free 1040ez 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. Free 1040ez form Report any taxable distributions on insurance policies on Form 1040, line 21. Free 1040ez form Dividends on veterans' insurance. Free 1040ez form   Dividends you receive on veterans' insurance policies are not taxable. Free 1040ez form In addition, interest on dividends left with the Department of Veterans Affairs is not taxable. Free 1040ez form Patronage dividends. Free 1040ez form   Generally, patronage dividends you receive in money from a cooperative organization are included in your income. Free 1040ez 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. Free 1040ez form But you must reduce the basis (cost) of the items bought. Free 1040ez form If the dividend is more than the adjusted basis of the assets, you must report the excess as income. Free 1040ez form   These rules are the same whether the cooperative paying the dividend is a taxable or tax-exempt cooperative. Free 1040ez form Alaska Permanent Fund dividends. Free 1040ez form    Do not report these amounts as dividends. Free 1040ez form Instead, report these amounts on Form 1040, line 21; Form 1040A, line 13; or Form 1040EZ, line 3. Free 1040ez form How To Report Dividend Income Generally, you can use either Form 1040 or Form 1040A to report your dividend income. Free 1040ez form Report the total of your ordinary dividends on line 9a of Form 1040 or Form 1040A. Free 1040ez form Report qualified dividends on line 9b of Form 1040 or Form 1040A. Free 1040ez form If you receive capital gain distributions, you may be able to use Form 1040A or you may have to use Form 1040. Free 1040ez form See Exceptions to filing Form 8949 and Schedule D (Form 1040) in chapter 16. Free 1040ez form If you receive nondividend distributions required to be reported as capital gains, you must use Form 1040. Free 1040ez form You cannot use Form 1040EZ if you receive any dividend income. Free 1040ez form Form 1099-DIV. Free 1040ez form   If you owned stock on which you received $10 or more in dividends and other distributions, you should receive a Form 1099-DIV. Free 1040ez form Even if you do not receive Form 1099-DIV, you must report all your dividend income. Free 1040ez form   See Form 1099-DIV for more information on how to report dividend income. Free 1040ez form Form 1040A or 1040. Free 1040ez 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. Free 1040ez form If your ordinary dividends are more than $1,500, you must also complete Schedule B (Form 1040A or 1040), Part III. Free 1040ez form   List on Schedule B (Form 1040A or 1040), Part II, line 5, each payer's name and the ordinary dividends you received. Free 1040ez 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. Free 1040ez 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. Free 1040ez form   Enter on line 6 the total of the amounts listed on line 5. Free 1040ez form Also enter this total on line 9a of Form 1040A or 1040. Free 1040ez form Qualified dividends. Free 1040ez form   Report qualified dividends (Form 1099-DIV, box 1b) on line 9b of Form 1040 or Form 1040A. Free 1040ez form The amount in box 1b is already included in box 1a. Free 1040ez form Do not add the amount in box 1b to, or substract it from, the amount in box 1a. Free 1040ez form   Do not include any of the following on line 9b. Free 1040ez form Qualified dividends you received as a nominee. Free 1040ez form See Nominees under How to Report Dividend Income in chapter 1 of Publication 550. Free 1040ez form Dividends on stock for which you did not meet the holding period. Free 1040ez form See Holding period , earlier under Qualified Dividends. Free 1040ez 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. Free 1040ez form Payments in lieu of dividends, but only if you know or have reason to know the payments are not qualified dividends. Free 1040ez 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. Free 1040ez 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. Free 1040ez form Enter qualified dividends on line 2 of the worksheet. Free 1040ez form Investment interest deducted. Free 1040ez 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. Free 1040ez form Reduce it by the qualified dividends you choose to include in investment income when figuring the limit on your investment interest deduction. Free 1040ez form This is done on the Qualified Dividends and Capital Gain Tax Worksheet or the Schedule D Tax Worksheet. Free 1040ez form For more information about the limit on investment interest, see Investment expenses in chapter 23. Free 1040ez form Expenses related to dividend income. Free 1040ez form   You may be able to deduct expenses related to dividend income if you itemize your deductions on Schedule A (Form 1040). Free 1040ez form See chapter 28 for general information about deducting expenses of producing income. Free 1040ez form More information. Free 1040ez 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. Free 1040ez form Prev  Up  Next   Home   More Online Publications
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LT 16 (Letter 2050) Frequently Asked Questions (FAQs)

What is the notice telling me?

Enforcement action may be taken to collect taxes you owe because you have not responded to previous notices sent to you on this matter.

What do I have to do?

Contact us to resolve your account. The letter includes a number of options available to you.

How much time do I have?

Contact us as soon as possible to avoid collection action, no later than 10 days from the date on the letter.

What happens if I don't pay?

Enforcement action including levy on your wages, bank accounts, federal payment, state tax refunds, or other income sources may result if your balance is not resolved. If you are unable to pay in full, a monthly payment plan may be available, or collection may be delayed if you are unable to pay due to financial hardship. Please be ready to discuss you income, expenses and assets owned if you feel that you are unable to pay; proof may be requested.

Who should I contact?

Contact us at the number shown at the top of the letter; the person who answers will be able to assist you.

What if I don't agree or have already taken corrective action?

If you do not agree with this notice, call us immediately at the number printed at the top of the notice. We will do our best to help you. If you called us about this matter before, but we did not correct the problem, you may want to contact the Office of the Taxpayer Advocate.

If you have already paid or arranged for an installment agreement, you should still call us at the number printed at the top of the notice to make sure your account reflects this.

Page Last Reviewed or Updated: 30-Jan-2014

The Free 1040ez Form

Free 1040ez form Index A Assistance (see Tax help) B Base amount, Base amount. Free 1040ez form C Canadian social security benefits, Canadian or German social security benefits paid to U. Free 1040ez form S. Free 1040ez form residents. Free 1040ez form Children's benefits, Children's benefits. Free 1040ez form Comments on publication, Comments and suggestions. Free 1040ez form D Deductions related to benefits, Deductions Related to Your Benefits $3,000 or less, Deduction $3,000 or less. Free 1040ez form $3,000. Free 1040ez form 01 or more, Deduction more than $3,000. Free 1040ez form Disability benefits repaid, Disability payments. Free 1040ez form E Estimated tax, Tax withholding and estimated tax. Free 1040ez form F Form 1040, Reporting on Form 1040. Free 1040ez form Form 1040A, Reporting on Form 1040A. Free 1040ez form Form RRB-1042S, Form RRB-1042S, Payments by the Railroad Retirement Board 2013 (Nonresident Aliens) Form RRB-1099, Lump-sum payment reported on Form SSA-1099 or RRB-1099. Free 1040ez form , Form RRB-1099, Payments by the Railroad Retirement Board 2013 Form SSA-1042S, Form SSA-1042S, Social Security Benefit Statement 2013 (Nonresident Aliens) Form SSA-1099, Lump-sum payment reported on Form SSA-1099 or RRB-1099. Free 1040ez form , Appendix Form W-4V, Tax withholding and estimated tax. Free 1040ez form Free tax services, Free help with your tax return. Free 1040ez form Future developments Product page, Reminders G German social security benefits, Canadian or German social security benefits paid to U. Free 1040ez form S. Free 1040ez form residents. Free 1040ez form H Help (see Tax help) J Joint returns, Joint return. Free 1040ez form L Legal expenses, Legal expenses. Free 1040ez form Lump-sum election, Lump-Sum Election Example, Example M Missing children, photographs of, Reminders N Nonresident aliens, Nonresident aliens. Free 1040ez form Form RRB-1042S, Form RRB-1042S, Payments by the Railroad Retirement Board 2013 (Nonresident Aliens) Form SSA-1042S, Form SSA-1042S, Social Security Benefit Statement 2013 (Nonresident Aliens) Nontaxable benefits, Benefits not taxable. Free 1040ez form P Permanent resident aliens, Lawful permanent residents. Free 1040ez form Publications (see Tax help) R Railroad retirement benefits, Introduction Repayments Benefits received in earlier year, Repayment of benefits. Free 1040ez form , Repayment of benefits received in an earlier year. Free 1040ez form Disability benefits, Disability payments. Free 1040ez form Gross benefits, Repayment of benefits. Free 1040ez form , Repayments More Than Gross Benefits Reporting requirements, How To Report Your Benefits Lump-sum payment, Lump-sum payment reported on Form SSA-1099 or RRB-1099. Free 1040ez form S Social Security benefits, Introduction Suggestions for publication, Comments and suggestions. Free 1040ez form T Tax help, How To Get Tax Help Taxable benefits Determination of, Are Any of Your Benefits Taxable?, How Much Is Taxable? Maximum taxable part, Maximum taxable part. Free 1040ez form Person receiving benefits determines, Who is taxed. Free 1040ez form Worksheets, Worksheet A. Free 1040ez form Examples, Examples, Worksheets Which to use, Which worksheet to use. Free 1040ez form Total income, figuring, Figuring total income. Free 1040ez form TTY/TDD information, How To Get Tax Help U U. Free 1040ez form S. Free 1040ez form citizens residing abroad, U. Free 1040ez form S. Free 1040ez form citizens residing abroad. Free 1040ez form U. Free 1040ez form S. Free 1040ez form residents Canadian or German social security benefits paid to, Canadian or German social security benefits paid to U. Free 1040ez form S. Free 1040ez form residents. Free 1040ez form W Withholding, Tax withholding and estimated tax. Free 1040ez form Exemption from, Exemption from withholding. Free 1040ez form Form W-4V, Tax withholding and estimated tax. Free 1040ez form Voluntary, Tax withholding and estimated tax. Free 1040ez form Worksheets Taxable benefits Blank Worksheet 1, Worksheets Filled-in Worksheet 1, Filled-in Worksheet 1. Free 1040ez form Figuring Your Taxable Benefits, Filled-in Worksheet 1. Free 1040ez form Figuring Your Taxable Benefits, Filled-in Worksheet 1. Free 1040ez form Figuring Your Taxable Benefits, Filled-in Worksheet 1. Free 1040ez form Figuring Your Taxable Benefits Quick calculation, sample, Worksheet A. Free 1040ez form Prev  Up     Home   More Online Publications