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Amended Return Form

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Amended Return Form

Amended return form Publication 901 - Introductory Material Table of Contents Future Developments Reminders IntroductionOrdering forms and publications. Amended return form Tax questions. Amended return form Obtaining copies of treaties. Amended return form Useful Items - You may want to see: Future Developments For the latest information about developments related to Publication 901, such as treaties effective after it was published, go to www. Amended return form irs. Amended return form gov/pub901. Amended return form Reminders Disclosure of a treaty-based position that reduces your tax. Amended return form  If you take the position that any U. Amended return form S. Amended return form tax is overruled or otherwise reduced by a U. Amended return form S. Amended return form treaty (a treaty-based position), you generally must disclose that position on your affected return. Amended return form See Application of Treaties, later. Amended return form U. Amended return form S. Amended return form –U. Amended return form S. Amended return form S. Amended return form R. Amended return form income tax treaty. Amended return form  The U. Amended return form S. Amended return form –U. Amended return form S. Amended return form S. Amended return form R. Amended return form income tax treaty remains in effect for the following members of the Commonwealth of Independent States: Armenia, Azerbaijan, Belarus, Georgia, Kyrgyzstan, Moldova, Tajikistan, Turkmenistan, and Uzbekistan. Amended return form That treaty will remain in effect until new treaties with these individual countries are negotiated and ratified. Amended return form Provisions of the U. Amended return form S. Amended return form –U. Amended return form S. Amended return form S. Amended return form R. Amended return form income tax treaty are discussed in this publication under Commonwealth of Independent States. Amended return form U. Amended return form S. Amended return form –China income tax treaty. Amended return form  The U. Amended return form S. Amended return form –China income tax treaty does not apply to Hong Kong. Amended return form Introduction This publication will tell you whether a tax treaty between the United States and a particular country offers a reduced rate of, or possibly a complete exemption from, U. Amended return form S. Amended return form income tax for residents of that particular country. Amended return form Tables in the back of this publication show the countries that have income tax treaties with the United States, the tax rates on different kinds of income, and the kinds of income that are exempt from tax. Amended return form You should use this publication only for quick reference. Amended return form It is not a complete guide to all provisions of every income tax treaty. Amended return form Comments and suggestions. Amended return form   We welcome your comments about this publication and your suggestions for future editions. Amended return form   You can write to us at the following address: Internal Revenue Service Business Forms and Publications Branch SE:W:CAR:MP:T:B 1111 Constitution Ave. Amended return form NW, IR-6526 Washington, DC 20224   We respond to many letters by telephone. Amended return form Therefore, it would be helpful if you would include your daytime phone number, including the area code, in your correspondence. Amended return form   You can email us at taxforms@irs. Amended return form gov. Amended return form Please put “Publications Comment” on the subject line. Amended return form You can also send us comments from www. Amended return form irs. Amended return form gov/formspubs. Amended return form Select “Comment on Tax Forms and Publications” under “Information About. Amended return form ”   Although we cannot respond individually to each comment received, we do appreciate your feedback and will consider your comments as we revise our tax products. Amended return form Ordering forms and publications. Amended return form   Visit www. Amended return form irs. Amended return form gov/formspubs to download forms and publications, call 1-800-829-3676, or write to the address below and receive a response within 10 days after your request is received. Amended return form Internal Revenue Service 1201 N. Amended return form Mitsubishi Motorway Bloomington, IL 61705-6613 Tax questions. Amended return form   If you have a tax question, check the information available on IRS. Amended return form gov or call 1-800-829-1040. Amended return form We cannot answer tax questions sent to either of the above addresses. Amended return form Obtaining copies of treaties. Amended return form   You can get complete information about treaty provisions from the taxing authority in the country from which you receive income or from the treaty itself. Amended return form   You can obtain the text of most of the treaties at www. Amended return form irs. Amended return form gov/businesses/international. Amended return form You can also obtain the text of most of the treaties at the following address: Department of the Treasury Office of Public Correspondence 1500 Pennsylvania Ave. Amended return form NW — Rm. Amended return form 3419 Washington, D. Amended return form C. Amended return form 20220 If you have specific questions about a treaty, you can get this information from most Internal Revenue Service offices or from: Internal Revenue Service International Section Philadelphia, PA 19255-0725 Useful Items - You may want to see: Publication 519 U. Amended return form S. Amended return form Tax Guide for Aliens 597 Information on the United States–Canada Income Tax Treaty Form (and Instructions) 8833 Treaty-Based Return Position Disclosure Under Section 6114 or 7701(b) See How To Get Tax Help near the end of this publication for information about getting these publications and forms. 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How to Contact the Tax Exempt and Government Entities Division


Charities & Non-Profits

  • For answers to technical and procedural questions about charities and other non-profit organizations, call IRS Tax Exempt and Government Entities Customer Account Services at (877) 829-5500 (toll-free number). If you prefer to write, use the address below.
  • For answers to employment tax questions, call the Business and Specialty Tax Line at (800) 829-4933 (toll-free).
  • To obtain a determination letter that applies the principles and precedents previously announced to a specific set of facts, or to transmit copies of amended documents write or fax to:

            Internal Revenue Service
            Exempt Organizations Determinations
            Room 4024
            P.O. Box 2508
            Cincinnati, OH 45201
            
            Fax: (855) 204-6184
  • To elevate an issue within the EO management structure about an issue in a specific case, write to the appropriate manager. 
  • To initiate a closing agreement, unrelated to an ongoing examination, contact the EO closing agreement coordinator.

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Indian Tribal Governments

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Retirement Plans Community

You may direct your technical and procedural questions concerning retirement plans to us in a variety of ways.

Call:

TE/GE Customer Account Services at (877) 829-5500 (toll-free number).

Write:

Internal Revenue Service
TE/GE Division, Correspondence Unit
P.O. Box 2508
Cincinnati, OH 45201

Email:

RetirementPlanQuestions@irs.gov
Note: All questions submitted via e-mail must be responded to via telephone, so please remember to include your phone number in your message. No personal information (SSN's, etc.) should be included in the e-mail.

 


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Page Last Reviewed or Updated: 06-Nov-2013

The Amended Return Form

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