Dividend income paid in subsequent year

[psk1]

Hi,

I have a situation where on my 1099 Dividends section, I have two columns for box 1a, Paid in 2021 and Paid/Adjusted in 2022 for 2021. I see $1800 in both columns but on the final amount column it says 0. Same $1800 is being reported under box3. How should I report this on my 2021 return? Appreciate your help?

Thanks in advance

SK

[Mike9241]

what happened was you got paid 1800 in dividends that were originally classified as taxable BOX 1a. subsequently, the payor notified the broker that the dividends were nontaxable so box 1 had to be zeroed out (the paid/adjusted column)  and then moved to box 3. box 3 does not have to be reported to the IRS - these are nontaxable dividends that will reduce your tax basis in the stock. if you didn't see the stock by year-end you should notice in some subsequent month, may be as late as March, the cost basis drops by $1800  

if there is nothing else on the 1099-DIV (just box 1 as adjusted = 0 box 3 = $1800), the 1099-DIV does not have to be entered.

[psk1]

Thanks for your quick response. This helps.

[psk1]

By the way the second column is titled as Paid/Adjusted in 2022 for 2021 and the 3rd column (Amount) has 0.