Dividend distribution from ESPP

Forum|Forum|7 years ago
June 1, 2019
1 reply
4 views

I received a 1099-DIV from an Employee Stock Purchase Program with Ordinary/Qualified dividends. I also paid Federal Income Tax (Box 4) as well as Foreign Tax (Box 7). Do the dividends for this stock program count as income? Any special treatment?

TurboTax Deluxe Windows

DanielV01

Level 15

Yes, they are treated as income, and yes, they can receive special treatment also. Oridinary dividends are taxed as ordinary income. However, qualified dividends are taxed at the more favorable capital gains rate.

In addition, you may claim a credit through the Form 1116 screen entries for the Foreign taxes you are paying on those dividends. The tax in Box 4 will be added to your other tax withholdings from all other sources.

To enter the dividends themselves, see this FAQ: https://ttlc.intuit.com/replies/5646916

**Say "Thanks" by clicking the thumb icon in a post. **Mark the post that answers your question by clicking on "Mark as Best Answer"