Tax Slayer entry:
Varies depending on the source of the dividends.
Box 1-4 and 6:
Federal Section > Income > Interest and Dividends (1099-INT, 1099-DIV) > Interest and Dividends > Dividend Income
- If part of a broker statement, look for additional information that may indicate that some of the dividends may be tax-exempt to the state.
- Dividends reported will appear on Form 1040 line 9a – Ordinary dividends or line 9b – Qualified dividends.
- Federal tax withheld will appear on Form 1040 line 62 – Federal income tax withheld
- Foreign tax paid will appear on Form 1040 line 47 – Foreign tax paid
Federal Section > Deductions > Itemized Deductions > Miscellaneous Deductions > Investment Fees and Expenses
- Income from sanctioned countries (Iran, N Korea, Sudan and Syria) require a form 1116 and is OUT OF SCOPE .
Federal Section > Income > Interest and Dividends (1099-INT, 1099-DIV) > Interest and Dividends > Tax Exempt Interest, Box 8
- If the dividends are from a non-Colorado entity, it will require a Colorado adjustment.
- Exempt-interest dividends (box 10) will appear on Form 1040 line 8b – Tax free interest income
Federal Section > Other Taxes > Alternative Minimum Tax (Form 6251)
- Enter on the line that reads “Interest from specified private activity bonds exempt from the regular tax”.
- This carries to Form 6251, line 12 which if required puts the return OUT OF SCOPE .
Federal Section > Payments & Estimates > Other State Withholdings☣ SOFTWARE ERROR If state tax was withheld, the state return will have to be paper filed to support that withholding. Attach a copy of the 1099-DIV that shows the withholding.