Have a Tax Question? Ask a Tax Expert
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If you are using TaxAct then you should be able to go to forms mode and enter the data directly from the 1099DIV to the TaxAct screen form. The software will compute the tax you do not have to. There is normally no federal income tax withheld from 1099DIV or 1099B forms,
I am not sure what you mean by 'redemptions' on the DIV. Can you tell me what box # XXXXX are in?
The last part of your question is interesting. You mention "interest earned year to date" but indicate it came from a mutual fund. Usually mutual funds do not pay "interest" they accumulate or lose value and pay dividends. Can you clarify that for me?
If itis in fact interest it is reported on line 8a of the tax return. Unless it is "tax exempt" it will be taxed at the taxpayers ordinary tax rate.
What you appear to be describing is the statement of account one receives on a periodic basis (usually quarterly) with respect to a variable annuity.
The concept of a "Tax Deferred" Annuity is that the earnings will be tax deferred until distributed.
If there were no distributions taken from the annuity by your friend that information is exactly that "informational" and need not be reported.
The only time annuity transactions would be reported is if there were distributions (withdrawals) and they would be reported on a 1099R.
DId she in fact receive $5,808?