If you know the amounts of Dividends she received in those years, you can enter them into the form and TurboTax will calculate the tax based on what you enter. With dividends and other distributions, you will need to know if they are ordinary vs. qualified dividends. Ordinary dividends are taxed using the ordinary income tax brackets for tax year 2020.
Qualified dividend taxes are usually calculated using the capital gains tax rates. For 2020, qualified dividends may be taxed at 0% if your taxable income falls below
- $40,001 for those filing single or married filing separately,
- $53,601 for head of household filers, or
- $80,001 for married filing jointly or qualifying widow(er) filing status.
The qualified dividend tax rate increases to 15% for taxable income above
- $40,000 through $248,300 for married filing separately filers,
- $40,000 through $441,450 for single filers,
- $53,600 through $469,050 for head of household filers, or
- $80,000 through $496,600 for married filing jointly or qualifying widow(er) filers.
Qualified dividend income above the upper limits of the 15% bracket requires paying a 20% tax rate on any remaining qualified dividend income. Depending on her specific tax situation, qualified dividends may also be subject to the 3.8% Net Investment Income Tax.
What does 1099-DIV report?
About Form 1099-DIV, Dividends and Distributions
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
