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posted Jun 7, 2019 3:25:58 PM

How do I allocate Qualified Dividends to Periods when using the Annualized Income Installment Method?

If Qualified Dividends are less than the Ordinary Dividends (i.e. Mutual Fund distributions), how do I allocate them to the calendar periods when using the Annualized Income Installment Method?  Would I allocate them pro-rata to the periods based upon the Ordinary Dividends received in each period?  Are there other ways to do this that are acceptable?

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1 Best answer
Level 15
Jun 7, 2019 3:25:59 PM

Yes, allocate them pro-rata to the periods based upon the Ordinary Dividends received in each period. 

1 Replies
Level 15
Jun 7, 2019 3:25:59 PM

Yes, allocate them pro-rata to the periods based upon the Ordinary Dividends received in each period.