Question

Crystal received substantial dividend income during the tax year. If her ordinary dividends exceed $1,500, how is this income reported on her tax return?

Answer 1

If Crystal’s ordinary dividends total more than $1,500, she must complete and attach Schedule B (Form 1040), Interest and Ordinary Dividends. On Schedule B she lists each dividend payer and amount; the schedule’s totals are carried to Form 1040 (ordinary dividends to the ordinary-dividends line and qualified dividends to the qualified-dividends line as appropriate). Use the amounts from her Form(s) 1099‑DIV (box 1a = total ordinary dividends; box 1b = qualified dividends).