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Why does investment income reported on a 1099-MISC result in $80 more tax due than if it was reported on a 1099-INT or 1099-DIV?

I answered all the 1099-MISC related questions as instructed for non-self-employment income.
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3 Replies
ThomasM125
Expert Alumni

Why does investment income reported on a 1099-MISC result in $80 more tax due than if it was reported on a 1099-INT or 1099-DIV?

Qualified dividends and most investment sale income is taxed at capital gain tax rates, that may be less than your ordinary tax rates that would apply to income reported on a form 1099-MISC. 

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strusser
New Member

Why does investment income reported on a 1099-MISC result in $80 more tax due than if it was reported on a 1099-INT or 1099-DIV?

Yes, but how do I correct this situation: Apparently my broker loaned out some of my stock to a short seller.  I received payment of a dividend paid while on loan as a substitute payment reported in box 8 of a 1099-misc.  How do I get this payment changed from ordinary income to qualified dividend?

 

ErnieS0
Expert Alumni

Why does investment income reported on a 1099-MISC result in $80 more tax due than if it was reported on a 1099-INT or 1099-DIV?

You can ask the brokerage to send a corrected 1099-DIV.

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