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Level 2
posted Jan 29, 2023 10:00:16 AM

Should my 1099 DIV that had non dividend distribution amounts in box 3 affect my taxes? Nothing in Box 1

These amounts were delayed dividends dating back to 2017.  When I entered, my refund did not change.  Is this right?

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1 Replies
Level 15
Jan 29, 2023 10:28:11 AM

Hard to know exactly...but the $$ in this box are supposed to be a non-taxable return of capital....that reduces your cost in whatever fund distributed the $$. 

 

IF the $$ on the form are being displayed in the proper box, you may not have to do anything other than make sure whatever funds distributed the $$, those funds have recorded the reduced Basis in those same holdings.  IF you are tracking their cost basis yourself, for confirmation, you would need to know what fund the $$ came fro

m, and see that the before/after cost basis has been changed appropriately in

whatever

 records you are keeping.