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?
On Form 1040, line 3a.
On Form 1040, lines 3a and 3b.
On Schedule B and Form 1040, line 3a.
On Schedule B and Form 1040, line 3b.

Answer 1

On Schedule B and Form 1040, line 3b.

If ordinary dividends exceed $1,500 you must complete Schedule B (Interest and Ordinary Dividends) and report the ordinary dividend total on Form 1040, line 3b (qualified dividends are reported on line 3a).