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Lev, Tax Advisor
Category: Tax
Satisfied Customers: 29558
Experience:  Taxes, Immigration, Labor Relations
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I have a question on regular dividends and qualified

Customer Question

I have a question on regular dividends and qualified dividends. I have no regular dividends but a few thousand in qualified dividends. But I was told that I cannot have more qualified dividends than regular dividends and that line 9a should include both together then list my qualified dividends on line 9b. I don't see how that will work. I end up having my qualified dividends figured into my income instead of figured separately. What am I doing wrong?
Submitted: 1 year ago.
Category: Tax
Expert:  Lev replied 1 year ago.
That is correct - Ordinary dividends and qualified dividends are NOT two separate items.For tax reporting purposes Ordinary dividends include qualified dividends.
Expert:  Lev replied 1 year ago.
if you have $1000 in qualified dividends - you need to report on form 1040line 9a Ordinary dividends = $1000, andline 9b Qualified dividends = $1000.Your Qualified dividends are INCLUDED into your income - that is correct - however - when tax is calculated on line 44 - instead of using a tax table directly - you will need to use a special worksheet from instructions.Does that answer your question?Let me know if you need any clarification this matter...I appreciate if you take a moment to rate the answer.Experts are ONLY credited when answers are rated positively.If you still have any doubts, need clarification - please be sure to ask.I am here to help you with all tax related issues.