Record of Dividends

• Any company that pays you more than $10 in dividends should send you a DIV-1099 form for your records.
  
  

Forms to Complete

• If you received any dividend income, you cannot use Form 1040EZ to file your taxes. If you received more than $1,500 in dividends you must file part two of schedule B which details where all of the dividend income came from.
  
  

What is a Qualified Dividend?

• Dividends are considered qualified if you owned the stock for at least 60 days out of the 121 days surrounding the ex-dividend date.
  
  

Benefits of Qualified Dividends

• Qualified dividends are taxed at a reduced rate. If they would have been taxed at a rate of 25 percent of more they are taxed at 15%. If they would have been taxed at a rate lower than 25 percent they are not taxed.
  
  

Unqualified Dividends

• Unqualified dividends are added to the taxpayer's adjusted gross income so they are taxed at the taxpayer's marginal tax rate.