How do I calculate the US Government interest for 1099-DIV?

[roy31]

After filling in dividends from 1099-DIV I am asked if any of these uncommon situations apply.

The first one is: A portion of these dividends is US Government interest.

Company dividends: 1a -$20.17 ;1b -$20.17, other boxes are 0; my income less than $40K, and I live in New York city.

Based on the info above, do I check the box that states: A portion of these dividends is US Government interest?

and how to calculate U.S. Government interest? Thanks.

[MinhT1]

No. You do not check this box.

In your case, you received $20.17 of qualified dividends (box 1a equals box 1b).

[roy31]

@MinhT1 Thank you for your quick response.  Should i click "continue" or "None of these apply".

Options below:

1. A portion of these dividends is U.S. Government interest.

2. I need to adjust these dividends or this is an ESOP distribution.

3. Some qualified dividends are from securities that didn't meet the required holding period.

4. None of these apply.

[MinhT1]

You should check None of these apply, then click Continue at the bottom right of the page.

[Fainster]

I have the same problem, and i clicked the correct option. though when it's time for my final review, both my 1099-DIVs show needs review. i click it and it asks me the same question. I click "None of these apply" again, and i get the same prompt again. what am i doing wrong?

[docssupervac]

You may have dividends that are not taxable at the state level (typically tax free income the fund generated from your home state). Most mutual fund/brokerage companies send an information sheet showing the % of total dividends attributable to different states. You multiply total dividends (1a) by the % in the chart for your state (NY). That total (usually small amount) is a deduction from federal dividend income on your state return. You may also find the information on the website of the company that sent the 1099. Here is an example from Fidelity https://www.fidelity.com/bin-public/060_www_fidelity_com/documents/TY23-GSE-Supplemental-Letter.pdf  You go across the top to find the fund that generated the dividends then go down to your state--the intersection of the two is the % you multiply by the total dividend. That number is the amount of govt interest you would enter into the program

[gdubbz]

@Fainster You might find it easier to delete the 1099-DIV and re-enter it again. Make sure that you have entered the figures from your 1099-DIV's into the correct boxes. If you're receiving a loop on review, you may have entered data into the wrong boxes and it is looking for more information/correction.