| FAQ Keyword |
2005 Tax Year |
Keyword: Dividends
This is archived information that pertains only to the 2005 Tax Year. If you
are looking for information for the current tax year, go to the Tax Prep Help Area.
How do I report this 1099-DIV from my mutual fund?
Enter the ordinary dividends from Form 1099-DIV (PDF),
box 1a, on line 9a of Form 1040 (PDF), U.S.
Individual Income Tax Return. Enter any qualified dividends from Form
1099-DIV, box 1b, on line 9b of Form 1040. If you have an amount entered in
other boxes of your 1099-DIV refer to Form 1040, Schedule D Instructions to
see where to report them. If your only capital gains and losses are from capital
gain distributions, refer to Form 1040 Instructions .
I received dividends from my credit union. How do I report this
income?
Certain distributions commonly referred to as dividends are actually interest.
They include "dividends" on deposits or share accounts in cooperative banks,
credit unions, domestic savings and loan associations, and mutual savings
banks.
Interest income can be reported on Form 1040 (PDF), Form 1040A (PDF), or Form 1040EZ (PDF).
If your taxable interest income is more than $1,500, be sure to show that
income on Form 1040, Schedule B (PDF) or Form 1040A, Schedule 1 (PDF). You cannot file Form 1040EZ
if your interest income is more than $1,500. Refer to Tax Topic 403, Interest
Received, for additional information on interest income.
References:
- Form 1040 (PDF), U.S. Individual Income
Tax Return
- Form 1040A (PDF), U.S. Individual Income
Tax Return
- Form 1040EZ (PDF), U.S. Individual Income
Tax Return for Single and Joint Filers with No Dependents
- Tax Topic 403, Interest Received
I have both purchased and sold shares in a money-market mutual fund.
The fund is managed so the share price is constant. All gain is reported as
dividends. Do I have to report the sale of these shares?
Yes, you report the sale of your shares on Form 1040, Schedule D (PDF), Capital Gains and Losses. Generally, whenever
you sell, exchange, or otherwise dispose of a capital asset, you report it
on Schedule D.
If the share price were constant, you would have neither a gain nor a
loss when you sell shares because you are selling the shares for the same
price you purchased them.
If you actually owned shares that were later sold, the fund or the broker
should have issued a Form 1099-B There is no requirement with that form that
there be gain or loss on the sale, only a sale or exchange of an investment
asset and sales proceeds.
Previous | FAQ Index | Next
Tax Topics Index | FAQs Index
2005 Tax Help Archives | Tax Help Archives Main | Home
|
