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Do I have to list qualified dividends if I do not know if I met the holding period?

I received a 1099 consolidated for my automated investing account. It says I have both ordinary and qualified dividends but right below that it says:

 

For dividends classified as "qualified dividends," the classification is made only from the issuer perspective without accounting for your holding period. Under IRS rules, classification as a qualified
dividend for a taxpayer also depends on the taxpayer's holding period in the relevant stock, and a taxpayer is responsible for confirming such qualification based on the taxpayer's actual holding period.

 

Only issue is I deposit cash into this account every month and it invests that money every month so tracking down every purchase against the dividends would be quite the task. I only made $10 in dividends all together so can I just claim them all as ordinary dividends to avoid the hassle?

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1 Reply
ErnieS0
Expert Alumni

Do I have to list qualified dividends if I do not know if I met the holding period?

You can report all your dividends are nonqualified dividends. Those dividends will not qualify for capital gains treatment. 

 

The payer of the dividend is required to correctly identify each type and amount of dividend for you when reporting them on your Form 1099-DIV for tax purposes so you should report your dividends as they appear on your consolidated 1099.

 

Topic No. 404 Dividends

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