Tax Slayer entry:
Varies depending on the source of the dividends.
Box 1 – 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 (1a, 1b) reported will appear on Form 1040 line 3a – Ordinary dividends or line 3b – Qualified dividends.
- Federal tax withheld (4) will appear on Form 1040 line 16 – Federal income tax withheld.
- Foreign tax paid (6) will appear on Form 1040 line S3-48 – Foreign tax credit.
Federal Section > Deductions > Itemized Deductions > Miscellaneous Deductions > Investment Fees and Expenses
- For 2015 – 2017: Investment expenses are entered on Schedule A line 23 Misc Deductions.
- For 2018: Now used for the 20% QBI deduction. (The investment expense deduction has been eliminated.) Enter on the TaxSlayer Dividends page.
- Income from sanctioned countries (Iran, N Korea, Sudan and Syria) require a form 1116 and is OUT OF SCOPE.
For 2015-17: Federal Section > Income > Interest and Dividends (1099-INT, 1099-DIV) > Interest and Dividends > Tax Exempt Interest, Box 8
For 2018: Federal Section > Income > Interest and Dividends (1099-INT, 1099-DIV) > Interest and Dividends > Dividend Income
- 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 2a – 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.