U.S. Governement Interest

[gjgogol]

The TT interview asks...

"Enter U.S. Government interest

Enter the amount of dividends reported on this 1099-DIV from [broker] that represents interest from U.S. Government obligations.

U.S. Government interest....$____________

In my brokers Consolidated 1099, it has a section called Mutual Fund and UIT Supplemental Information where it lists the funds with PERCENTAGE OF INCOME FROM US GOVERNMENT SECURITIES. These funds that are listed with income from US Government securities have the following transaction types:

Long-term capital gain

Nondividend distribution

Nonqualified dividend

Qualified dividend

Section 199A dividend

Short-term capital gain

Collectibles 28% gain

Unrecaptured section 1250 gain

Do I apply the PERCENTAGE OF INCOME FROM US GOVERNMENT SECURITIES provided to each of these transaction types to come up with the answer asked for in the interview for U.S. Government interest?

[ThomasM125]

That may be how it works, I can't tell for sure as I don't see what you are looking at. The 1099-DIV statement you have lists dividend income in line 1(a) on that form. Your supplemental worksheets should provide a breakdown of what makes up that number. It appears that a percentage of the dividends from each fund are from US government securities. If so, then you would multiply the dividends from each fund times the applicable percentage to derive the portion from US government securities. You would then add up all the individual US government dividends for each fund to get the total and enter that into TurboTax.

[gjgogol]

@ThomasM125If this helps, attached are two pictures that reflect what I have for my broker's 1099 form. I've highlighted one of the funds on each that is an example showing the different "transaction types" involved.  I am wondering if I should apply the percentage to ALL of the different "transaction types" or just certain ones (e.g. that have the words "dividend" in the name).

[ThomasM125]

Ok, it looks like you have $1,333,09 in income from T Rowe Price CAP APRC Invs and 13.75% of that is US government securities. So you would multiply .1375 times $1,333.09 to get the amount for US government interest from that investment.

[gjgogol]

@ThomasM125So I can include ALL of the $1,333,09 which includes the following transaction categories?

Long-term capital gain

Nonqualified dividend

Qualified dividend

Short-term capital gain

[ThomasM125]

Just the interest income would be entered, but it may be difficult to discern the portion of  the income that represents capital gains to exclude that. You may have to inspect the paperwork better if you are concerned about nailing the entry down to the penny.