1099-DIV & qualified dividends & holding periods

[GrumpyCamel1409]

Once I enter the information for a 1099-DIV a "check all that apply" sort of question comes up where one of the checkboxes is "Some qualified dividends are from securities that didn't meet the required holding period."

I read the information in the learn more link and if I understood things correctly, I may need to do an additional check.

Some background:

1. I purchased 34 shares of VWO on November 16th, 2023, and 1 share of VWO on December 7th, 2023.

2. The ex-dividend date for VWO is December 18th, 2023.

3. I sold 35 shares of VWO on December 18th, 2023.

4. I received a dividend payment of 30.27 dollars on December 21st, 2023.

5. The 1099-DIV splits it: qualified: $7.01 and non-qualified $26.17.

This is my conclusion:

I held the 34+1 VWO shares for 32 and 11 days respectively, which is less than the 60 days minimum that I should've held them in the period of time starting on October 19th, 2023 (60 days before the ex-dividend date) and February 16th, 2024 (60 days after the ex-dividend date).

Therefore, I check the box "Some qualified dividends are from securities that didn't meet the required holding period" and proceed with the adjustment in the next screen.

The next screen asks "Dividends that meet the 60/90 day holding period".

The response would be the value of box 1b, Qualified dividends, in the 1099-DIV minus $7.01.

Is this the correct approach? Did I miss something?

[ThomasM125]

Since you didn't meet the 60 day holding period, you should enter $0 for the dividends that meet the 60 day holding period. You didn't hold the securities for 60 days, so they don't get qualified dividend treatment.

[GrumpyCamel1409]

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@ThomasM125 wrote:

Since you didn't meet the 60 day holding period, you should enter $0 for the dividends that meet the 60 day holding period. You didn't hold the securities for 60 days, so they don't get qualified dividend treatment.

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This is assuming I didn't have other holdings that did meet the holding requirement, correct?

Otherwise, it seems that the process of determining whether the holding requirement is met, as I specified above, is correct.

[MonikaK1]

Yes, the entry in the screenshot is just referring to the dividends shown.