Cardinal24 wrote:

- quote -

Not schedule b, but the schedule d worksheet to calculate
the separate but lower tax just on the 89$ qualified
dividends. See the 1040 instructions.

ChEAr$,
Harlan Lunsford, EA n LA

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Cardinal24 wrote:

- quote -

Both numbers being the same means all the dividens qualify
for the lower tax rate. Line 9a gets added to your gross
income but line 9b comes into play when you figure your tax
due (dividend/capital gain worksheet)

Bob Bauer

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Cardinal24 wrote:

- quote -

You report the information per the instructions. Qualified
dividends are a subset of ordinary dividends. Total income
includes all dividends. The amount of Line 9b is used to
compute your tax liability using the applicable tax
worksheet.

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"Cardinal24" <david.flaschen[at]gmail.com> writes:

- quote -

That's not unusual.

- quote -

You put $89.44 on 9a and $89.44 on 9b.

- quote -

Correct, since 9a (Ordinary Dividends) is the total of ALL
dividends -- qualified and non-qualified -- though in this
case you have no non-qual dividends.

- quote -

No.

- quote -

No, 1040 includes all of 9a. 1040 does do nothing with 9b.
**However**, the "Qualified Dividends and Long-Term Capital
Gains Worksheet" in the 1040 instruction book most certainly
does do something with 9b. Read the instructions for
computing the "Tax" line of 1040 more closely.

--
Rich Carreiro rlcarr[at]animato.arlington.ma.us

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david.flaschen[at]gmail.com (Cardinal24) asked:

- quote -

Enter the $89 on both lines, as reported to you on the 1099.

- quote -

No need to fill out a Sch B, if total interest or dividends
don't exceed the $1,500 limit.

You obtain the lower-rate benefit from Qualified Dividends,
by using the "Qualified Dividends and Capital Gain Tax
Worksheet" -- which can be found on page 38 of the Form 1040
Instructions. Follow the instructions carefully for each
line of the worksheet, and all will work out in the end.

Bill

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I have a few shares of Reuters ADR.
They sent me a 1099-DIV. Box 1a has $89.44 (Ordinary
dividends). However, Box 1b has $89.44 (Qualified
dividends) THE SAME AMOUNT!

This is confusing.
So, what do I put on my 1040 for lines 9a and lines 9b?

It seems that 9a is added to get Line 22 - Total Income, but
Line 9b is NOT added.

Help with knowing what I am supposed to do would be, well,
helpful.

Thank you.

Do I need to fill out a Schedule B to enjoy the lower rate
of the Qualified Dividends. It seems like 1040 doesn't "do
anything" to 9a if there is something in 9b.

Thanks.

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