LindaS5247
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Get your taxes done using TurboTax

Nonqualified dividends are taxed as ordinary income in New York State.  This should have been reported to you on a Form 1009-DIV. 

 

Nonqualified dividends are taxed as regular income and are subject to the same rate as the person's federal income tax rate, ranging from 10% to 37%.

 

Nonqualified dividend income is listed in box 1a of the 1099-DIV IRS form, while qualified dividends go in box 1b.

 

When entering your Form 1099-DIV you should see this prompt:

 

 

And then this prompt.  This is where you enter your Government Percentage Amount:

 

 

 

 

Note:  Keep a copy of your Brokerage Statement that shows the  % of the Government for your tax records.


You will see your dividends on your New York State Tax Return by clicking into Forms Mode (top right of your screen) and on the left panel, select your New York State Tax Return to view it.

 

 

 

This is how your New York State Tax Return will look:

 

 

 

 

For New York State you will not be able to claim those unless the your fund holds at least 50% of it's holdings in US Govt Securities. Some states only allow exemptions on dividends for those funds holding a minimum percentage, usually 50%, of government securities at the end of each quarter.

 

 

Click here for additional information on Form 1099-DIV.

 

Click here for additional information on taxes on dividends.
 

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