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posted Mar 4, 2020 2:08:17 PM

On my 1040, ordinary dividends include qualified dividends in line 3b. shouldn't this just show the ordinary portion?

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1 Best answer
Expert Alumni
Mar 4, 2020 2:30:27 PM

The IRS Instructions for line 3a on the 1040 state "Enter your total qualified dividends on line 3a. Qualified dividends also are included in the ordinary dividend total required to be shown on line 3b."

 

So qualified dividends end up being in Adjusted Gross Income, even though they are taxed differently (you should be able to find a Qualified Dividend/Capital Gains Worksheet showing the calculation).

1 Replies
Expert Alumni
Mar 4, 2020 2:30:27 PM

The IRS Instructions for line 3a on the 1040 state "Enter your total qualified dividends on line 3a. Qualified dividends also are included in the ordinary dividend total required to be shown on line 3b."

 

So qualified dividends end up being in Adjusted Gross Income, even though they are taxed differently (you should be able to find a Qualified Dividend/Capital Gains Worksheet showing the calculation).