Filing Your Taxes Online is Fast, Easy and Secure.
Start now and receive your tax refund in as little as 7 days.

1. Get Answers

Your online questions are customized to your unique tax situation.

2. Maximize your Refund

Find tax credits for everything from school tuition to buying a hybri

3. E-File for FREE

E-file free with direct deposit to get your refund in as few as 7 days.

Filing your taxes with paper mail can be difficult and it could take weeks for your refund to arrive. IRS e-file is easy, fast and secure. There is no paperwork going to the IRS so tax refunds can be processed in as little as 7 days with direct deposit. As you prepare your taxes online, you can see your tax refund in real time.

FREE audit support and representation from an enrolled agent – NEW and only from H&R Block

File 2006 Federal Taxes Free

2014 1040ez FormFree H & R Block FilingFree State E Filing2007 Free Tax SoftwareTax Filing 2014Tax Return 2013Printable 1040ez FormFile My 2011 TaxesHow To File State Taxes Free OnlineIrs Ez Form Online1040 Ez 2010Irs 2012 Tax Forms 1040 EzFiling Taxes For FreeFile Taxes For FreeState Free Tax ReturnFile Amended Tax Return OnlineAmendment FormFiling 2010 Taxes In 20132011 Tax ReturnFile 2007 Taxes FreeState Tax FileFiling Late ReturnsHow To File Taxes For 2011Free Tax PrepTurbotax Military DiscountCan Still E File 2011 TaxesHow To File A Tax ExtensionTaxact Login Tax Return Taxact Login Page Taxact Sign Page2009 1040 FormForm 1040ez InstructionsHow To File 1040x FormHow To Amend My 2010 Tax ReturnCan I File A 1040x OnlineAmmend Tax ReturnFederal Tax Forms 2011 EzNy State Tax Forms 2011Form 1040 Ez 2013 InstructionsFiling 2012 Taxes For FreeTurbotax 1040ez OnlineFreetaxusa2012

File 2006 Federal Taxes Free

File 2006 federal taxes free Index A Accountable plan, Accountable plans. File 2006 federal taxes free Additional Medicare Tax, What's New, Introduction, Additional Medicare Tax. File 2006 federal taxes free Administrators, Teachers or administrators. File 2006 federal taxes free American Samoa, Residents of Puerto Rico, the U. File 2006 federal taxes free S. File 2006 federal taxes free Virgin Islands, Guam, the CNMI, and American Samoa. File 2006 federal taxes free , Specified U. File 2006 federal taxes free S. File 2006 federal taxes free possessions. File 2006 federal taxes free Assistance (see Tax help) C Cantors, Cantors. File 2006 federal taxes free Christian Science Practitioners, Table 1. File 2006 federal taxes free Are Your Ministerial Earnings* Covered Under FICA or SECA?, Christian Science Practitioners and Readers, Practitioners. File 2006 federal taxes free , Christian Science Practitioners and Readers, Members of the Clergy Readers, Table 1. File 2006 federal taxes free Are Your Ministerial Earnings* Covered Under FICA or SECA?, Christian Science Practitioners and Readers, Readers. File 2006 federal taxes free , Christian Science Practitioners and Readers Common-law employee, Common-law employee. File 2006 federal taxes free Commonwealth of the Northern Mariana Islands (CNMI), Residents of Puerto Rico, the U. File 2006 federal taxes free S. File 2006 federal taxes free Virgin Islands, Guam, the CNMI, and American Samoa. File 2006 federal taxes free , Specified U. File 2006 federal taxes free S. File 2006 federal taxes free possessions. File 2006 federal taxes free Comprehensive example, Comprehensive Example, Attachment 2—John E. File 2006 federal taxes free White011-00-2222 Worksheet 4. File 2006 federal taxes free Figuring Net Self-Employment Income for Schedule SE (Form 1040) Credit Earned income, Earned Income Credit Retirement savings contributions, Retirement savings contributions credit. File 2006 federal taxes free D Deduction for self-employment tax, Deduction for SE Tax E Earned income credit, Earned Income Credit Effective date Exemption from FICA taxes, Effective date. File 2006 federal taxes free Exemption from self-employment (SE) tax, Effective date of exemption. File 2006 federal taxes free , Effective date of exemption. File 2006 federal taxes free Employment status, Employment status for other tax purposes. File 2006 federal taxes free Estimated tax, Income Tax Withholding and Estimated Tax Exclusion, foreign earned income, Foreign Earned Income Exemption Form 4029, Table 2. File 2006 federal taxes free The Self-Employment Tax Exemption Application and Approval Process, Requesting Exemption—Form 4029 Form 4361, Table 2. File 2006 federal taxes free The Self-Employment Tax Exemption Application and Approval Process, Requesting Exemption—Form 4361 From FICA taxes, Exemption From FICA Taxes From self-employment (SE) tax, Exemption From Self-Employment (SE) Tax, Refunds of SE tax paid. File 2006 federal taxes free F Federal Insurance Contributions Act (see FICA) FICA Earnings covered, Table 1. File 2006 federal taxes free Are Your Ministerial Earnings* Covered Under FICA or SECA? Effective date of exemption, Effective date. File 2006 federal taxes free Election to exclude church employees, Election by Church To Exclude Its Employees From FICA Coverage Filing requirements for most taxpayers, Filing Your Return Foreign earned income, Foreign Earned Income Form 1040, Excess rental allowance. File 2006 federal taxes free , Health Insurance Costs of Self-Employed Ministers, Deduction for SE Tax, Exemption from SE tax. File 2006 federal taxes free , Form 1040, , 1040-ES, Income Tax Withholding and Estimated Tax 1040X, Refunds of SE tax. File 2006 federal taxes free , Refunds of SE tax paid. File 2006 federal taxes free 2106-EZ, 4029, Table 2. File 2006 federal taxes free The Self-Employment Tax Exemption Application and Approval Process, Requesting Exemption—Form 4029, Exemption from SE tax. File 2006 federal taxes free 4361, Table 2. File 2006 federal taxes free The Self-Employment Tax Exemption Application and Approval Process, Requesting Exemption—Form 4361, Exemption from SE tax. File 2006 federal taxes free 8959, What's New, Introduction, Additional Medicare Tax. File 2006 federal taxes free 941, Forms 941, 943, and 944. File 2006 federal taxes free 943, Forms 941, 943, and 944. File 2006 federal taxes free 944, Forms 941, 943, and 944. File 2006 federal taxes free Schedule A (Form 1040), Schedule C-EZ (Form 1040), Schedule SE (Form 1040), SS-8, Form SS-8. File 2006 federal taxes free Free tax services, Free help with your tax return. File 2006 federal taxes free G Gross income Amounts included in, Amounts included in gross income. File 2006 federal taxes free Amounts not included in, Amounts not included in gross income. File 2006 federal taxes free Guam, Residents of Puerto Rico, the U. File 2006 federal taxes free S. File 2006 federal taxes free Virgin Islands, Guam, the CNMI, and American Samoa. File 2006 federal taxes free , Specified U. File 2006 federal taxes free S. File 2006 federal taxes free possessions. File 2006 federal taxes free H Health insurance costs, deductibility, Health Insurance Costs of Self-Employed Ministers Help (see Tax help) Home ownership, exclusion of allowance, Home ownership. File 2006 federal taxes free , Cantors. File 2006 federal taxes free House or parsonage, fair rental value, Fair rental value of parsonage. File 2006 federal taxes free I Income tax Estimated tax, Income Tax Withholding and Estimated Tax Income and expenses, Income Tax: Income and Expenses, Income Tax Withholding and Estimated Tax Withholding, Income Tax Withholding and Estimated Tax Individual retirement arrangements (IRAs), Individual retirement arrangements (IRAs). File 2006 federal taxes free K Keogh (H. File 2006 federal taxes free R. File 2006 federal taxes free 10) plans, Retirement plans for the self-employed. File 2006 federal taxes free L Lay employees (see Religious workers) Living abroad, Overseas duty. File 2006 federal taxes free , Foreign Earned Income M Members of recognized religious sects, Table 1. File 2006 federal taxes free Are Your Ministerial Earnings* Covered Under FICA or SECA?, Members of Recognized Religious Sects Members of religious orders, Table 1. File 2006 federal taxes free Are Your Ministerial Earnings* Covered Under FICA or SECA?, Members of Religious Orders, Members of Religious Orders, Members of the Clergy, Refunds of SE tax. File 2006 federal taxes free , Earnings—Members of Religious Orders Ministerial services, exemption for Christian Science practitioners and readers, Christian Science Practitioners and Readers Members of religious orders, Members of Religious Orders Ministers, Ministers Ministers, Table 1. File 2006 federal taxes free Are Your Ministerial Earnings* Covered Under FICA or SECA?, Ministers, Ministers defined. File 2006 federal taxes free , Form SS-8. File 2006 federal taxes free , Ministers, Members of the Clergy, Refunds of SE tax. File 2006 federal taxes free , Income Tax: Income and Expenses, Income Tax Withholding and Estimated Tax Retired, Retired ministers. File 2006 federal taxes free Missionary team, married couple, Married Couple Missionary Team N Nonaccountable plan, Nonaccountable plan. File 2006 federal taxes free Nonfarm optional method, Nonfarm Optional Method Nonresident aliens, U. File 2006 federal taxes free S. File 2006 federal taxes free Citizens and Resident and Nonresident Aliens O Offerings and fees, Amounts included in gross income. File 2006 federal taxes free , Offerings and Fees Overseas duty, Overseas duty. File 2006 federal taxes free , Foreign Earned Income P Parsonage allowance, Amounts included in gross income. File 2006 federal taxes free , Exclusion of Rental Allowance and Fair Rental Value of a Parsonage, Cantors. File 2006 federal taxes free Publications (see Tax help) Puerto Rico, Residents of Puerto Rico, the U. File 2006 federal taxes free S. File 2006 federal taxes free Virgin Islands, Guam, the CNMI, and American Samoa. File 2006 federal taxes free , Specified U. File 2006 federal taxes free S. File 2006 federal taxes free possessions. File 2006 federal taxes free Q Qualified retirement plan, Retirement plans for the self-employed. File 2006 federal taxes free R Refunds, self-employment tax, Refunds of SE tax. File 2006 federal taxes free , Refunds of SE tax paid. File 2006 federal taxes free Reimbursements, Employee reimbursement arrangements. File 2006 federal taxes free Religious orders, members of, Table 1. File 2006 federal taxes free Are Your Ministerial Earnings* Covered Under FICA or SECA?, Members of Religious Orders, Members of Religious Orders, Members of the Clergy, Refunds of SE tax. File 2006 federal taxes free , Earnings—Members of Religious Orders Religious workers, Table 1. File 2006 federal taxes free Are Your Ministerial Earnings* Covered Under FICA or SECA?, Coverage of Religious Workers (Church Employees) Rental allowance, Amounts included in gross income. File 2006 federal taxes free , Exclusion of Rental Allowance and Fair Rental Value of a Parsonage, Rental allowances. File 2006 federal taxes free , Cantors. File 2006 federal taxes free Resident aliens, U. File 2006 federal taxes free S. File 2006 federal taxes free Citizens and Resident and Nonresident Aliens Retired ministers, Retired ministers. File 2006 federal taxes free Retirement savings arrangements, Retirement Savings Arrangements Retirement savings contributions credit, Retirement savings contributions credit. File 2006 federal taxes free Royalty income from books, Books or articles. File 2006 federal taxes free S SECA, Table 1. File 2006 federal taxes free Are Your Ministerial Earnings* Covered Under FICA or SECA?, Social Security Coverage Sects, members of recognized religious, Table 1. File 2006 federal taxes free Are Your Ministerial Earnings* Covered Under FICA or SECA?, Members of Recognized Religious Sects Self-Employment Contributions Act (see SECA) Self-employment tax Deduction, Deduction for SE Tax Exemption, Exemption From Self-Employment (SE) Tax, Refunds of SE tax paid. File 2006 federal taxes free , Exemption from SE tax. File 2006 federal taxes free Maximum earnings, Earnings Subject to SE Tax Nonfarm optional method, Nonfarm Optional Method Refunds of, Refunds of SE tax. File 2006 federal taxes free , Refunds of SE tax paid. File 2006 federal taxes free Regular method, Regular Method Self-employment, net earnings from, Self-Employment Tax: Figuring Net Earnings, More information. File 2006 federal taxes free SIMPLE plan, Retirement plans for the self-employed. File 2006 federal taxes free Simplified employee pension (SEP) plan, Retirement plans for the self-employed. File 2006 federal taxes free Social security coverage, Social Security Coverage T Tax help, How To Get Tax Help Tax-free income, deductibility of expenses, Expenses Allocable to Tax-Free Income Tax-sheltered annuity plans, Tax-sheltered annuity plans. File 2006 federal taxes free Teachers, Teachers or administrators. File 2006 federal taxes free Theological students, Theological students. File 2006 federal taxes free Traveling evangelists, Traveling evangelists. File 2006 federal taxes free U U. File 2006 federal taxes free S. File 2006 federal taxes free citizens, U. File 2006 federal taxes free S. File 2006 federal taxes free Citizens and Resident and Nonresident Aliens U. File 2006 federal taxes free S. File 2006 federal taxes free Virgin Islands, Residents of Puerto Rico, the U. File 2006 federal taxes free S. File 2006 federal taxes free Virgin Islands, Guam, the CNMI, and American Samoa. File 2006 federal taxes free , Specified U. File 2006 federal taxes free S. File 2006 federal taxes free possessions. File 2006 federal taxes free V Vow of poverty, Table 1. File 2006 federal taxes free Are Your Ministerial Earnings* Covered Under FICA or SECA?, Vow of poverty. File 2006 federal taxes free , Services performed outside the order. File 2006 federal taxes free , Effect of employee status. File 2006 federal taxes free , Exemption From Self-Employment (SE) Tax, Earnings—Members of Religious Orders Prev  Up     Home   More Online Publications
Print - Click this link to Print this page

2012 ITIN Review Frequently Asked Questions

What are the interim changes to the ITIN application requirements?
The IRS is revising its procedures for issuing new Individual Taxpayer Identification Numbers (ITINs) as part of a comprehensive review of the ITIN processing procedures. Forms W-7, Application for IRS Individual Taxpayer Identification Number, submitted during the interim period beginning June 22, 2012 through the end of the year must include original documentation such as passports and birth certificates, or copies of these documents certified by the issuing agency. During this interim period, notarized copies of documentation will not be accepted.

Are there any applicants who are exempt from these new requirements?
Some categories of applicants are not impacted by these interim changes, including spouses and dependents of U.S. military personnel who need ITINs. People who should follow the current procedures outlined in the Form W-7 instructions include:

  • Military spouses and dependents without an SSN who need an ITIN (Military spouses use box "e" on Form W-7 and military dependents use box "d"). Exceptions to the new interim document standards will be made for military family members satisfying the documentation requirements by providing a copy of the spouse or parent's U.S. military identification, or applying from an overseas APO/FPO address.
  • Nonresident aliens applying for ITINs for the purpose of claiming tax treaty benefits (use boxes "a" and "h" on Form W-7). Non-resident alien applicants generally need ITINs for reasons besides filing a U.S. tax return. This is necessary for nonresident aliens who may be subject to third-party withholding for various income, such as certain gambling winnings or pension income, or need an ITIN for information reporting purposes. While existing documentation standards will be maintained only for these applicants, scrutiny of the documents will be heightened. ITIN applications of this category that are accompanied by a U.S. tax return will be subject to the new interim document standards.

What is the difference between a "certified" and a "notarized" document?
A certified document is one that the original issuing agency provides and certifies as an exact copy of the original document and contains an official stamped seal from the Agency. These documents will be accepted. A notarized document is one that the taxpayer provides to a public notary who bears witness to the signing of the official document and affixes a seal assuring that the document is legitimate. These documents will not be accepted for ITIN applications. Note there are some applicants who are exempt from this change. This exemption is described in a previous question.

Why is IRS changing the ITIN program procedures?
The IRS is instituting these interim changes while conducting a review of the program designed to strengthen and protect the integrity of the ITIN process.

Is this a temporary change to the program? If so, how long will it be in effect?
These are interim changes that have been put in place during a comprehensive review of ITIN processing procedures. Any permanent changes will be issued before the start of the 2013 filing season when most requests for ITINs come in.

When will the interim changes be effective?
These changes will be effective for all new applications submitted on or after June 22, 2012 and will remain in effect until the final rules are issued later this year.

If a taxpayer had a pending application on file with IRS before June 22, 2012, will processing continue with the notarized copies already submitted?
Yes, the IRS is analyzing the existing inventory of ITIN applications. Some taxpayers who have already filed applications may be required to furnish additional documentation directly to the IRS. However, no additional action is required for people who have already filed ITIN requests unless they are contacted by the IRS.

If a taxpayer had a pending application on file with IRS before June 22, 2012, that included original or certified documents, will the taxpayer need to take any additional action?
No. IRS will continue to process pending applications that include original or certified documentation.

Will Publications 1915, 4520 or 4327, or tax forms and instructions change to reflect this new requirement? If so, when will they change and when will they be available to the public?
Since these are interim changes, publications, forms and instructions will not change. Once IRS has determined the appropriate changes, these and other appropriate instructions will be updated to reflect the new policy.

Will taxpayers be able to submit Form W-7 applications (with original documents) at IRS Taxpayer Assistance Centers?
During this interim period, IRS Taxpayer Assistance Centers will accept original documentation or copies of these documents certified by the issuing agency and forward the documents to the Austin Submission Processing Center. 

Which documents are acceptable?
See the instructions for Form W-7. These instructions list 13 acceptable documents.

Will the IRS return my original documents to me? How long will it take to get them back?
The IRS currently receives original documents with some applications and we have a process in place to ensure that documents are returned to applicants.  The original and certified documents will be returned to applicants using the mailing address on the application via postage paid standard U.S. mail within 60 days of receipt and processing of the Form W-7.

Whom should I contact if I do not receive the documents within the allotted period?
If you do not receive your original documents within 65 days of mailing to the IRS, allowing 5 days for postal mail receipt, you may call 1-800-908-9982 (U.S. only) or for international, call 1-267-941-1000 (this is not a toll free number).

Are there any alternative options for me if I cannot get the original documents I need?
Unless you are one of the exempt applicants described above, this change requires the submission of original or certified copies of documentation from the issuing agency in order to obtain an ITIN. You may be able to request a certified copy of your passport or similar international identification (e.g., Matricula Card) at your local consulate's office.

If I cannot get the documents I need to apply for an ITIN, can I apply for a Social Security number instead?
If you qualify for a social security number, you should not be applying for an ITIN.

Can my consulate or embassy certify my documents?
You may be able to request a certified copy of documents at an embassy or consulate.  However, services may vary between countries, so we recommend that you contact the appropriate consulate or embassy for specific information.

My consulate or embassy wants to know why I need a certified copy of my passport.  What should I provided them as proof of requirement?
We recommend that you refer the consulate or embassy to the information on www.IRS.gov or that you download and copy that information and provide it to them.

Will the IRS accept an apostille document?
During this interim period, the IRS is only accepting original documentation or copies of documents certified by the issuing country or agency.  An apostille does not meet these requirements since it is similar to the U.S. Notary, which we are currently not accepting.  You may be able to request a certified copy of identification documents at the applicant’s embassy or consulate. However, services may vary between countries so we recommend that you contact the appropriate consulate or embassy for that information.  

As a reminder, some categories of applicants are exempt from the requirement to provide original or certified copies including U.S. Military spouses (box “e” on Form W-7), U.S. Military dependents (box “d” on Form W-7), and non-resident aliens applying for ITINs to claim tax treaty benefits (box “a” and ”h” on Form W-7).

 

Additional Information For Certifying Acceptance Agents (CAAs) and Acceptance Agents (AAs)

Can CAAs and AAs still submit Forms W-7 to the IRS for taxpayers?
Yes, CAAs and AAs can still submit Forms W-7 on behalf of their clients but must provide the original documents or certified copies from the issuing agency along with Form 14194, Certificate of Accuracy, unless the applicant is exempt as described above. If the applicant is exempt, CAAs and AAs must still provide identification documents along with the Form 14194, however, notarized copies of those documents will be accepted.

As a CAA or AA, is there anything I need to do differently when submitting my client's W-7 application for an ITIN?
As a CAA or AA you will be required to include original documentation or certified copies from the issuing agency along with your client's Form W-7 application. While using Form 14194, Certificate of Accuracy, in lieu of original documents is no longer appropriate, the IRS still requires that you submit it with the applications and necessary documents. IRS will make the determination of whether applicants qualify for an ITIN based on the documentation submitted. Note the exempt applicants described above.

Will IRS continue to process applications to become an AA or CAA?
IRS will not process any applications during this interim review period but those interested in being an AA or CAA should still submit their applications during the open season that runs through August 31, 2012.

Page Last Reviewed or Updated: 03-Jun-2013

The File 2006 Federal Taxes Free

File 2006 federal taxes free 8. File 2006 federal taxes free   Dividends and Other Distributions Table of Contents Reminder Introduction Useful Items - You may want to see: General InformationDividends not reported on Form 1099-DIV. File 2006 federal taxes free Reporting tax withheld. File 2006 federal taxes free Nominees. File 2006 federal taxes free Ordinary DividendsQualified Dividends Dividends Used to Buy More Stock Money Market Funds Capital Gain DistributionsBasis adjustment. File 2006 federal taxes free Nondividend DistributionsLiquidating Distributions Distributions of Stock and Stock Rights Other DistributionsInformation reporting requirement. File 2006 federal taxes free Alternative minimum tax treatment. File 2006 federal taxes free How To Report Dividend IncomeInvestment interest deducted. File 2006 federal taxes free Reminder Foreign-source income. File 2006 federal taxes free  If you are a U. File 2006 federal taxes free S. File 2006 federal taxes free 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. File 2006 federal taxes free S. File 2006 federal taxes free law. File 2006 federal taxes free 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. File 2006 federal taxes free 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. File 2006 federal taxes free This chapter also explains how to report dividend income on your tax return. File 2006 federal taxes free Dividends are distributions of money, stock, or other property paid to you by a corporation or by a mutual fund. File 2006 federal taxes free You also may receive dividends through a partnership, an estate, a trust, or an association that is taxed as a corporation. File 2006 federal taxes free However, some amounts you receive that are called dividends are actually interest income. File 2006 federal taxes free (See Dividends that are actually interest under Taxable Interest in chapter 7. File 2006 federal taxes free ) Most distributions are paid in cash (or check). File 2006 federal taxes free However, distributions can consist of more stock, stock rights, other property, or services. File 2006 federal taxes free 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. File 2006 federal taxes free Tax on unearned income of certain children. File 2006 federal taxes free   Part of a child's 2013 unearned income may be taxed at the parent's tax rate. File 2006 federal taxes free If it is, Form 8615, Tax for Certain Children Who Have Unearned Income, must be completed and attached to the child's tax return. File 2006 federal taxes free If not, Form 8615 is not required and the child's income is taxed at his or her own tax rate. File 2006 federal taxes free    Some parents can choose to include the child's interest and dividends on the parent's return if certain requirements are met. File 2006 federal taxes free Use Form 8814, Parents' Election To Report Child's Interest and Dividends, for this purpose. File 2006 federal taxes free   For more information about the tax on unearned income of children and the parents' election, see chapter 31. File 2006 federal taxes free Beneficiary of an estate or trust. File 2006 federal taxes free    Dividends and other distributions you receive as a beneficiary of an estate or trust are generally taxable income. File 2006 federal taxes free You should receive a Schedule K-1 (Form 1041), Beneficiary's Share of Income, Deductions, Credits, etc. File 2006 federal taxes free , from the fiduciary. File 2006 federal taxes free Your copy of Schedule K-1 (Form 1041) and its instructions will tell you where to report the income on your Form 1040. File 2006 federal taxes free Social security number (SSN) or individual taxpayer identification number (ITIN). File 2006 federal taxes free    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. File 2006 federal taxes free This includes payers of dividends. File 2006 federal taxes free If you do not give your SSN or ITIN to the payer of dividends, you may have to pay a penalty. File 2006 federal taxes free For more information on SSNs and ITINs, see Social Security Number (SSN) in chapter 1. File 2006 federal taxes free Backup withholding. File 2006 federal taxes free   Your dividend income is generally not subject to regular withholding. File 2006 federal taxes free However, it may be subject to backup withholding to ensure that income tax is collected on the income. File 2006 federal taxes free Under backup withholding, the payer of dividends must withhold, as income tax, on the amount you are paid, applying the appropriate withholding rate. File 2006 federal taxes free   Backup withholding may also be required if the IRS has determined that you underreported your interest or dividend income. File 2006 federal taxes free For more information, see Backup Withholding in chapter 4. File 2006 federal taxes free Stock certificate in two or more names. File 2006 federal taxes free   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. File 2006 federal taxes free Form 1099-DIV. File 2006 federal taxes free   Most corporations and mutual funds use Form 1099-DIV, Dividends and Distributions, to show you the distributions you received from them during the year. File 2006 federal taxes free Keep this form with your records. File 2006 federal taxes free You do not have to attach it to your tax return. File 2006 federal taxes free Dividends not reported on Form 1099-DIV. File 2006 federal taxes free   Even if you do not receive Form 1099-DIV, you must still report all your taxable dividend income. File 2006 federal taxes free For example, you may receive distributive shares of dividends from partnerships or S corporations. File 2006 federal taxes free These dividends are reported to you on Schedule K-1 (Form 1065), Partner's Share of Income, Deductions, Credits, etc. File 2006 federal taxes free , and Schedule K-1 (Form 1120S), Shareholder's Share of Income, Deductions, Credits, etc. File 2006 federal taxes free Reporting tax withheld. File 2006 federal taxes free   If tax is withheld from your dividend income, the payer must give you a Form 1099-DIV that indicates the amount withheld. File 2006 federal taxes free Nominees. File 2006 federal taxes free   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. File 2006 federal taxes free Form 1099-MISC. File 2006 federal taxes free   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. File 2006 federal taxes free See Reporting Substitute Payments under Short Sales in chapter 4 of Publication 550 for more information about reporting these payments. File 2006 federal taxes free Incorrect amount shown on a Form 1099. File 2006 federal taxes free   If you receive a Form 1099 that shows an incorrect amount (or other incorrect information), you should ask the issuer for a corrected form. File 2006 federal taxes free The new Form 1099 you receive will be marked “Corrected. File 2006 federal taxes free ” Dividends on stock sold. File 2006 federal taxes free   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. File 2006 federal taxes free Dividends received in January. File 2006 federal taxes free   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. File 2006 federal taxes free You report the dividend in the year it was declared. File 2006 federal taxes free Ordinary Dividends Ordinary (taxable) dividends are the most common type of distribution from a corporation or a mutual fund. File 2006 federal taxes free They are paid out of earnings and profits and are ordinary income to you. File 2006 federal taxes free This means they are not capital gains. File 2006 federal taxes free 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. File 2006 federal taxes free Ordinary dividends will be shown in box 1a of the Form 1099-DIV you receive. File 2006 federal taxes free 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. File 2006 federal taxes free They should be shown in box 1b of the Form 1099-DIV you receive. File 2006 federal taxes free The maximum rate of tax on qualified dividends is: 0% on any amount that otherwise would be taxed at a 10% or 15% rate. File 2006 federal taxes free 15% on any amount that otherwise would be taxed at rates greater than 15% but less than 39. File 2006 federal taxes free 6%. File 2006 federal taxes free 20% on any amount that otherwise would be taxed at a 39. File 2006 federal taxes free 6% rate. File 2006 federal taxes free To qualify for the maximum rate, all of the following requirements must be met. File 2006 federal taxes free The dividends must have been paid by a U. File 2006 federal taxes free S. File 2006 federal taxes free corporation or a qualified foreign corporation. File 2006 federal taxes free (See Qualified foreign corporation , later. File 2006 federal taxes free ) The dividends are not of the type listed later under Dividends that are not qualified dividends . File 2006 federal taxes free You meet the holding period (discussed next). File 2006 federal taxes free Holding period. File 2006 federal taxes free   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. File 2006 federal taxes free 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. File 2006 federal taxes free Instead, the seller will get the dividend. File 2006 federal taxes free   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. File 2006 federal taxes free See the examples later. File 2006 federal taxes free Exception for preferred stock. File 2006 federal taxes free   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. File 2006 federal taxes free If the preferred dividends are due to periods totaling less than 367 days, the holding period in the previous paragraph applies. File 2006 federal taxes free Example 1. File 2006 federal taxes free You bought 5,000 shares of XYZ Corp. File 2006 federal taxes free common stock on July 9, 2013. File 2006 federal taxes free XYZ Corp. File 2006 federal taxes free paid a cash dividend of 10 cents per share. File 2006 federal taxes free The ex-dividend date was July 16, 2013. File 2006 federal taxes free Your Form 1099-DIV from XYZ Corp. File 2006 federal taxes free shows $500 in box 1a (ordinary dividends) and in box 1b (qualified dividends). File 2006 federal taxes free However, you sold the 5,000 shares on August 12, 2013. File 2006 federal taxes free You held your shares of XYZ Corp. File 2006 federal taxes free for only 34 days of the 121-day period (from July 10, 2013, through August 12, 2013). File 2006 federal taxes free The 121-day period began on May 17, 2013 (60 days before the ex-dividend date), and ended on September 14, 2013. File 2006 federal taxes free You have no qualified dividends from XYZ Corp. File 2006 federal taxes free because you held the XYZ stock for less than 61 days. File 2006 federal taxes free Example 2. File 2006 federal taxes free 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. File 2006 federal taxes free You held the stock for 63 days (from July 16, 2013, through September 16, 2013). File 2006 federal taxes free 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). File 2006 federal taxes free Example 3. File 2006 federal taxes free You bought 10,000 shares of ABC Mutual Fund common stock on July 9, 2013. File 2006 federal taxes free ABC Mutual Fund paid a cash dividend of 10 cents a share. File 2006 federal taxes free The ex-dividend date was July 16, 2013. File 2006 federal taxes free The ABC Mutual Fund advises you that the portion of the dividend eligible to be treated as qualified dividends equals 2 cents per share. File 2006 federal taxes free Your Form 1099-DIV from ABC Mutual Fund shows total ordinary dividends of $1,000 and qualified dividends of $200. File 2006 federal taxes free However, you sold the 10,000 shares on August 12, 2013. File 2006 federal taxes free You have no qualified dividends from ABC Mutual Fund because you held the ABC Mutual Fund stock for less than 61 days. File 2006 federal taxes free Holding period reduced where risk of loss is diminished. File 2006 federal taxes free   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. File 2006 federal taxes free 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. File 2006 federal taxes free You were grantor (writer) of an option to buy substantially identical stock or securities. File 2006 federal taxes free Your risk of loss is diminished by holding one or more other positions in substantially similar or related property. File 2006 federal taxes free   For information about how to apply condition (3), see Regulations section 1. File 2006 federal taxes free 246-5. File 2006 federal taxes free Qualified foreign corporation. File 2006 federal taxes free   A foreign corporation is a qualified foreign corporation if it meets any of the following conditions. File 2006 federal taxes free The corporation is incorporated in a U. File 2006 federal taxes free S. File 2006 federal taxes free possession. File 2006 federal taxes free 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. File 2006 federal taxes free For a list of those treaties, see Table 8-1. File 2006 federal taxes free 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. File 2006 federal taxes free See Readily tradable stock , later. File 2006 federal taxes free Exception. File 2006 federal taxes free   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. File 2006 federal taxes free Readily tradable stock. File 2006 federal taxes free   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. File 2006 federal taxes free For a list of the exchanges that meet these requirements, see www. File 2006 federal taxes free sec. File 2006 federal taxes free gov/divisions/marketreg/mrexchanges. File 2006 federal taxes free shtml. File 2006 federal taxes free Dividends that are not qualified dividends. File 2006 federal taxes free   The following dividends are not qualified dividends. File 2006 federal taxes free They are not qualified dividends even if they are shown in box 1b of Form 1099-DIV. File 2006 federal taxes free Capital gain distributions. File 2006 federal taxes free Dividends paid on deposits with mutual savings banks, cooperative banks, credit unions, U. File 2006 federal taxes free S. File 2006 federal taxes free building and loan associations, U. File 2006 federal taxes free S. File 2006 federal taxes free savings and loan associations, federal savings and loan associations, and similar financial institutions. File 2006 federal taxes free (Report these amounts as interest income. File 2006 federal taxes free ) 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. File 2006 federal taxes free 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. File 2006 federal taxes free 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. File 2006 federal taxes free Payments in lieu of dividends, but only if you know or have reason to know the payments are not qualified dividends. File 2006 federal taxes free 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. File 2006 federal taxes free Table 8-1. File 2006 federal taxes free Income Tax Treaties Income tax treaties the United States has with the following countries satisfy requirement (2) under Qualified foreign corporation. File 2006 federal taxes free 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. File 2006 federal taxes free 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. File 2006 federal taxes free Most mutual funds also permit shareholders to automatically reinvest distributions in more shares in the fund, instead of receiving cash. File 2006 federal taxes free 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. File 2006 federal taxes free 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. File 2006 federal taxes free 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. File 2006 federal taxes free But you may be able to deduct the service charge. File 2006 federal taxes free See chapter 28 for more information about deducting expenses of producing income. File 2006 federal taxes free In some dividend reinvestment plans, you can invest more cash to buy shares of stock at a price less than fair market value. File 2006 federal taxes free 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. File 2006 federal taxes free When figuring this amount, use the fair market value of the stock on the dividend payment date. File 2006 federal taxes free Money Market Funds Report amounts you receive from money market funds as dividend income. File 2006 federal taxes free Money market funds are a type of mutual fund and should not be confused with bank money market accounts that pay interest. File 2006 federal taxes free 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). File 2006 federal taxes free They will be shown in box 2a of the Form 1099-DIV you receive from the mutual fund or REIT. File 2006 federal taxes free Report capital gain distributions as long-term capital gains, regardless of how long you owned your shares in the mutual fund or REIT. File 2006 federal taxes free Undistributed capital gains of mutual funds and REITs. File 2006 federal taxes free    Some mutual funds and REITs keep their long-term capital gains and pay tax on them. File 2006 federal taxes free You must treat your share of these gains as distributions, even though you did not actually receive them. File 2006 federal taxes free However, they are not included on Form 1099-DIV. File 2006 federal taxes free Instead, they are reported to you in box 1a of Form 2439. File 2006 federal taxes free   Report undistributed capital gains (box 1a of Form 2439) as long-term capital gains on Schedule D (Form 1040), column (h), line 11. File 2006 federal taxes free   The tax paid on these gains by the mutual fund or REIT is shown in box 2 of Form 2439. File 2006 federal taxes free You take credit for this tax by including it on Form 1040, line 71, and checking box a on that line. File 2006 federal taxes free Attach Copy B of Form 2439 to your return, and keep Copy C for your records. File 2006 federal taxes free Basis adjustment. File 2006 federal taxes free   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. File 2006 federal taxes free Additional information. File 2006 federal taxes free   For more information on the treatment of distributions from mutual funds, see Publication 550. File 2006 federal taxes free 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. File 2006 federal taxes free You should receive a Form 1099-DIV or other statement showing the nondividend distribution. File 2006 federal taxes free On Form 1099-DIV, a nondividend distribution will be shown in box 3. File 2006 federal taxes free If you do not receive such a statement, you report the distribution as an ordinary dividend. File 2006 federal taxes free Basis adjustment. File 2006 federal taxes free   A nondividend distribution reduces the basis of your stock. File 2006 federal taxes free It is not taxed until your basis in the stock is fully recovered. File 2006 federal taxes free This nontaxable portion is also called a return of capital; it is a return of your investment in the stock of the company. File 2006 federal taxes free 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. File 2006 federal taxes free   When the basis of your stock has been reduced to zero, report any additional nondividend distribution you receive as a capital gain. File 2006 federal taxes free Whether you report it as a long-term or short-term capital gain depends on how long you have held the stock. File 2006 federal taxes free See Holding Period in chapter 14. File 2006 federal taxes free Example. File 2006 federal taxes free You bought stock in 2000 for $100. File 2006 federal taxes free In 2003, you received a nondividend distribution of $80. File 2006 federal taxes free You did not include this amount in your income, but you reduced the basis of your stock to $20. File 2006 federal taxes free You received a nondividend distribution of $30 in 2013. File 2006 federal taxes free The first $20 of this amount reduced your basis to zero. File 2006 federal taxes free You report the other $10 as a long-term capital gain for 2013. File 2006 federal taxes free You must report as a long-term capital gain any nondividend distribution you receive on this stock in later years. File 2006 federal taxes free Liquidating Distributions Liquidating distributions, sometimes called liquidating dividends, are distributions you receive during a partial or complete liquidation of a corporation. File 2006 federal taxes free These distributions are, at least in part, one form of a return of capital. File 2006 federal taxes free They may be paid in one or more installments. File 2006 federal taxes free You will receive Form 1099-DIV from the corporation showing you the amount of the liquidating distribution in box 8 or 9. File 2006 federal taxes free For more information on liquidating distributions, see chapter 1 of Publication 550. File 2006 federal taxes free Distributions of Stock and Stock Rights Distributions by a corporation of its own stock are commonly known as stock dividends. File 2006 federal taxes free Stock rights (also known as “stock options”) are distributions by a corporation of rights to acquire the corporation's stock. File 2006 federal taxes free Generally, stock dividends and stock rights are not taxable to you, and you do not report them on your return. File 2006 federal taxes free Taxable stock dividends and stock rights. File 2006 federal taxes free   Distributions of stock dividends and stock rights are taxable to you if any of the following apply. File 2006 federal taxes free You or any other shareholder have the choice to receive cash or other property instead of stock or stock rights. File 2006 federal taxes free 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. File 2006 federal taxes free The distribution is in convertible preferred stock and has the same result as in (2). File 2006 federal taxes free The distribution gives preferred stock to some common stock shareholders and common stock to other common stock shareholders. File 2006 federal taxes free The distribution is on preferred stock. File 2006 federal taxes free (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. File 2006 federal taxes free )   The term “stock” includes rights to acquire stock, and the term “shareholder” includes a holder of rights or of convertible securities. File 2006 federal taxes free If you receive taxable stock dividends or stock rights, include their fair market value at the time of distribution in your income. File 2006 federal taxes free Preferred stock redeemable at a premium. File 2006 federal taxes free   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. File 2006 federal taxes free For more information, see chapter 1 of Publication 550. File 2006 federal taxes free Basis. File 2006 federal taxes free   Your basis in stock or stock rights received in a taxable distribution is their fair market value when distributed. File 2006 federal taxes free 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. File 2006 federal taxes free Fractional shares. File 2006 federal taxes free    You may not own enough stock in a corporation to receive a full share of stock if the corporation declares a stock dividend. File 2006 federal taxes free 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. File 2006 federal taxes free Any cash you receive for fractional shares under such a plan is treated as an amount realized on the sale of the fractional shares. File 2006 federal taxes free Report this transaction on Form 8949, Sales and Other Dispositions of Capital Assets. File 2006 federal taxes free 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. File 2006 federal taxes free    Report these transactions on Form 8949 with the correct box checked. File 2006 federal taxes free   For more information on Form 8949 and Schedule D (Form 1040), see chapter 4 of Publication 550. File 2006 federal taxes free Also see the Instructions for Form 8949 and the Instructions for Schedule D (Form 1040). File 2006 federal taxes free Example. File 2006 federal taxes free You own one share of common stock that you bought on January 3, 2004, for $100. File 2006 federal taxes free The corporation declared a common stock dividend of 5% on June 29, 2013. File 2006 federal taxes free The fair market value of the stock at the time the stock dividend was declared was $200. File 2006 federal taxes free You were paid $10 for the fractional-share stock dividend under a plan described in the discussion above. File 2006 federal taxes free You figure your gain or loss as follows: Fair market value of old stock $200. File 2006 federal taxes free 00 Fair market value of stock dividend (cash received) +10. File 2006 federal taxes free 00 Fair market value of old stock and stock dividend $210. File 2006 federal taxes free 00 Basis (cost) of old stock after the stock dividend (($200 ÷ $210) × $100) $95. File 2006 federal taxes free 24 Basis (cost) of stock dividend (($10 ÷ $210) × $100) + 4. File 2006 federal taxes free 76 Total $100. File 2006 federal taxes free 00 Cash received $10. File 2006 federal taxes free 00 Basis (cost) of stock dividend − 4. File 2006 federal taxes free 76 Gain $5. File 2006 federal taxes free 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. File 2006 federal taxes free Scrip dividends. File 2006 federal taxes free   A corporation that declares a stock dividend may issue you a scrip certificate that entitles you to a fractional share. File 2006 federal taxes free The certificate is generally nontaxable when you receive it. File 2006 federal taxes free 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. File 2006 federal taxes free   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. File 2006 federal taxes free You must include its fair market value in income on the date you receive it. File 2006 federal taxes free Other Distributions You may receive any of the following distributions during the year. File 2006 federal taxes free Exempt-interest dividends. File 2006 federal taxes free   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. File 2006 federal taxes free Exempt-interest dividends should be shown in box 10 of Form 1099-DIV. File 2006 federal taxes free Information reporting requirement. File 2006 federal taxes free   Although exempt-interest dividends are not taxable, you must show them on your tax return if you have to file a return. File 2006 federal taxes free This is an information reporting requirement and does not change the exempt-interest dividends to taxable income. File 2006 federal taxes free Alternative minimum tax treatment. File 2006 federal taxes free   Exempt-interest dividends paid from specified private activity bonds may be subject to the alternative minimum tax. File 2006 federal taxes free See Alternative Minimum Tax (AMT) in chapter 30 for more information. File 2006 federal taxes free Dividends on insurance policies. File 2006 federal taxes free    Insurance policy dividends the insurer keeps and uses to pay your premiums are not taxable. File 2006 federal taxes free However, you must report as taxable interest income the interest that is paid or credited on dividends left with the insurance company. File 2006 federal taxes free    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. File 2006 federal taxes free Do not include them in your gross income until they are more than the total of all net premiums you paid for the contract. File 2006 federal taxes free Report any taxable distributions on insurance policies on Form 1040, line 21. File 2006 federal taxes free Dividends on veterans' insurance. File 2006 federal taxes free   Dividends you receive on veterans' insurance policies are not taxable. File 2006 federal taxes free In addition, interest on dividends left with the Department of Veterans Affairs is not taxable. File 2006 federal taxes free Patronage dividends. File 2006 federal taxes free   Generally, patronage dividends you receive in money from a cooperative organization are included in your income. File 2006 federal taxes free   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. File 2006 federal taxes free But you must reduce the basis (cost) of the items bought. File 2006 federal taxes free If the dividend is more than the adjusted basis of the assets, you must report the excess as income. File 2006 federal taxes free   These rules are the same whether the cooperative paying the dividend is a taxable or tax-exempt cooperative. File 2006 federal taxes free Alaska Permanent Fund dividends. File 2006 federal taxes free    Do not report these amounts as dividends. File 2006 federal taxes free Instead, report these amounts on Form 1040, line 21; Form 1040A, line 13; or Form 1040EZ, line 3. File 2006 federal taxes free How To Report Dividend Income Generally, you can use either Form 1040 or Form 1040A to report your dividend income. File 2006 federal taxes free Report the total of your ordinary dividends on line 9a of Form 1040 or Form 1040A. File 2006 federal taxes free Report qualified dividends on line 9b of Form 1040 or Form 1040A. File 2006 federal taxes free If you receive capital gain distributions, you may be able to use Form 1040A or you may have to use Form 1040. File 2006 federal taxes free See Exceptions to filing Form 8949 and Schedule D (Form 1040) in chapter 16. File 2006 federal taxes free If you receive nondividend distributions required to be reported as capital gains, you must use Form 1040. File 2006 federal taxes free You cannot use Form 1040EZ if you receive any dividend income. File 2006 federal taxes free Form 1099-DIV. File 2006 federal taxes free   If you owned stock on which you received $10 or more in dividends and other distributions, you should receive a Form 1099-DIV. File 2006 federal taxes free Even if you do not receive Form 1099-DIV, you must report all your dividend income. File 2006 federal taxes free   See Form 1099-DIV for more information on how to report dividend income. File 2006 federal taxes free Form 1040A or 1040. File 2006 federal taxes free    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. File 2006 federal taxes free If your ordinary dividends are more than $1,500, you must also complete Schedule B (Form 1040A or 1040), Part III. File 2006 federal taxes free   List on Schedule B (Form 1040A or 1040), Part II, line 5, each payer's name and the ordinary dividends you received. File 2006 federal taxes free 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. File 2006 federal taxes free 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. File 2006 federal taxes free   Enter on line 6 the total of the amounts listed on line 5. File 2006 federal taxes free Also enter this total on line 9a of Form 1040A or 1040. File 2006 federal taxes free Qualified dividends. File 2006 federal taxes free   Report qualified dividends (Form 1099-DIV, box 1b) on line 9b of Form 1040 or Form 1040A. File 2006 federal taxes free The amount in box 1b is already included in box 1a. File 2006 federal taxes free Do not add the amount in box 1b to, or substract it from, the amount in box 1a. File 2006 federal taxes free   Do not include any of the following on line 9b. File 2006 federal taxes free Qualified dividends you received as a nominee. File 2006 federal taxes free See Nominees under How to Report Dividend Income in chapter 1 of Publication 550. File 2006 federal taxes free Dividends on stock for which you did not meet the holding period. File 2006 federal taxes free See Holding period , earlier under Qualified Dividends. File 2006 federal taxes free 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. File 2006 federal taxes free Payments in lieu of dividends, but only if you know or have reason to know the payments are not qualified dividends. File 2006 federal taxes free 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. File 2006 federal taxes free   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. File 2006 federal taxes free Enter qualified dividends on line 2 of the worksheet. File 2006 federal taxes free Investment interest deducted. File 2006 federal taxes free   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. File 2006 federal taxes free Reduce it by the qualified dividends you choose to include in investment income when figuring the limit on your investment interest deduction. File 2006 federal taxes free This is done on the Qualified Dividends and Capital Gain Tax Worksheet or the Schedule D Tax Worksheet. File 2006 federal taxes free For more information about the limit on investment interest, see Investment expenses in chapter 23. File 2006 federal taxes free Expenses related to dividend income. File 2006 federal taxes free   You may be able to deduct expenses related to dividend income if you itemize your deductions on Schedule A (Form 1040). File 2006 federal taxes free See chapter 28 for general information about deducting expenses of producing income. File 2006 federal taxes free More information. File 2006 federal taxes free    For more information about how to report dividend income, see chapter 1 of Publication 550 or the instructions for the form you must file. File 2006 federal taxes free Prev  Up  Next   Home   More Online Publications