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New Member
posted Jun 4, 2019 3:14:31 PM

I received a 1099-DIV, but no 1099-INT from my brokerage account. Do I pay tax on dividends?

I just opened an account towards end of 2018. My bank only gave me a 1099-DIV. There is total ordinary dividends (1a) and 1b is qualified dividends. The amounts are less than $5. Do I pay taxes on dividends? 

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1 Best answer
Intuit Alumni
Jun 4, 2019 3:14:32 PM

Yes, these dividends will be subject to taxes.

There are two types of dividends ordinary and qualified dividends.

The major difference between the two are ordinary dividends are taxed at ordinary tax rates while qualified dividends are taxed at the more favorable capital gains rates.

4 Replies
Intuit Alumni
Jun 4, 2019 3:14:32 PM

Yes, these dividends will be subject to taxes.

There are two types of dividends ordinary and qualified dividends.

The major difference between the two are ordinary dividends are taxed at ordinary tax rates while qualified dividends are taxed at the more favorable capital gains rates.

New Member
Jun 4, 2019 3:14:34 PM

Is there a section on turbotax to enter 1099-DIV that will ask me to enter the numbers separately (ordinary vs qualified)?

Also, do these dividends take into account losses also? Is it the net profit? Do I have to calculate that myself?

Intuit Alumni
Jun 4, 2019 3:14:35 PM

Yes you will be asked to enter the dividends separately.  The dividends are net profits you do not have to do any calculations with the dividend amounts.

Level 2
Jun 4, 2019 3:14:36 PM

Profits and losses come into play when stocks are sold.