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Tax Form 1099-DIV Dividends & Capital Gains Reporting - YouTube
Channel: TaxGuide101
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hi everyone this is aki with our
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another video in the 15 most common tax
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forms and um we're going to go over
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right now we went to w2 1099 int we're
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going to go to the next one which is
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1099 div which is dividends and
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distribution so i have an example here
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and here's my 1099 div form which box by
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box instructions and
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i have that also available in the
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article
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and if you you know want more detailed
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instruction we're just going to go over
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like general for majority of the people
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because some of the stuff can be
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more in depth and it can be complicated
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but we're just going through for general
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information for for most taxpayers now
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there's a instruction link
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info at the bottom and there's a booklet
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i mean they have a whole
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pdf that basically goes over
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basically where you can find more
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information on irs website
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now
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here at the very top we have standard
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information this is the payer this is
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your broker most of the time now you
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should receive this form if you were
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paid more than ten dollars or any had
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any withholdings soybean box for and you
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should receive it by january first but
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this can be delayed like many times
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brokers actually issue them
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later or they issue something first and
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then they issue a corrected one
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now also it's important to know that
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this look of the 1099 div that's the
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form that's kind of created by irs but
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many brokers they actually don't use it
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that exact layout they use it their own
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layout which looks kind of
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um more kind of across information and
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it's it's often presented differently
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from what you have here however
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they will also have each of these boxes
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corresponding
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to the irs form so you will have maybe
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different presentation but you will have
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box one a b
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and so on if if if the box is not listed
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most of the time it means it doesn't
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apply
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now you also may have this form received
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from the brokers together with the 1099
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int
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and maybe even 1099 miscellaneous so
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you know the statement may be very like
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a few pages 10 20 pages and it could
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have all kinds of information detail
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usually it's a summary the first page
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and then detail
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on this um supporting pages
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now so we here we have the broker
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information the cin which is the
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taxpayer identification number which is
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kind of like a social security for the
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broker for the entity then we have your
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information your social now everything
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here on this form is a dummy so this is
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an example i have i have jane here with
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her address
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now if you have multiple account numbers
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they would be listed here and this is
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important because you might have
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multiple
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account numbers and you can get
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multiple 1099 div so you want to make
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sure that it's not duplicate and you
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don't disregard something that might be
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for another account or if you're married
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filing jointly you might have multi you
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can might even have four of these like
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if if each of you has two different
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accounts
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uh with a different broker so uh it can
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get um complicated but the most
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important things are listed in these
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boxes so
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the year of the form we have it here
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for all the forms it's kind of like that
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um
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then in a box one here you have the
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total ordinary dividends
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and then in box b we have qualified
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dividends so the difference between them
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is that some of the dividends in box 1b
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are actually part of the dividends box
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1a but their tax differently so the 1a
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ones
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are the total but
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the portion in box b it's actually
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taxed at reduced rates so
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right now for 2021 the tax rates for
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qualified dividend and long-term capital
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gains would be
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0 15 and was it 20 i think it's 20
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so they're much lower rates than the
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maximum tax bracket rate so this is
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important because you may be let's say
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in the
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zero percent rate so that means that
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these qualified dividends actually would
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not be taxed for you
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so this is really an advantages
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for men taxpayers that's why how kind of
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wealthy people get away with some of the
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non-payment of taxes because
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they have these very long-term
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um
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you know dividends or capital gains and
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if they reduce their tax in different
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ways they might actually pay
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much lower rates the maximum is 20 and
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if they're in the highest bracket that's
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much less than
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the 20
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for the qualified dividends or long-term
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capital
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gains
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so these items go on your 1040 now 2a
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that's the total capital gain
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distribution and this is long-term
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capital gain distribution which we just
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talked about
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now b
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c d e f these are very specific um
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situations which i'm not going to go
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over but um you can go to irs website
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now click the link i will i will um
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put the link to that booklet where you
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can find out
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what are these items
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now
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box 5
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so this dividends is eligible for the 20
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qbi qualified business
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uh income deduction which actually is uh
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pretty
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pretty big can be for for
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you know for taxpayers so it's important
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to look at for that information and make
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sure if you do have numbers there put it
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in your tax return
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um when you file
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then
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number seven we have foreign tax paid so
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this you might also have it often on
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your especially with mutual funds
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you know you might be investing in some
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foreign
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companies or companies that also
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operate across borders and so on and you
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could have it and you could have six
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dollars five dollars fifty dollars or or
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more and in box eight it usually says
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which countries and many times you will
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have various because you have
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if you have mutual funds and there's
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like hundred or thousand companies there
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there would actually be
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you know have foreign tax paid in number
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of these countries so that's why it's
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listed usually in detail
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you have more information about which
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countries but on the main page you will
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just have it
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various unless it's one country listed
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now it's important to know
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if you do have you know up to you know
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more than 300 for single or more than
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600 for merit filing jointly you might
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be required to file form one one one six
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if it's less than that it usually
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doesn't require that so it's it's you
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know it just goes and on your tax return
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just like that flows into 1040.
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um
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now let's see now also box
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11. so this would be tax exam interest
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dividend so this would also be listed on
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your 1040 line 2a
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um not taxable so that's awesome and
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then you have state information and
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rarely you have state tax withheld
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but
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it could be possible so you do want to
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make sure that you put everything that
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you have on your 1099 div into your tax
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return
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and um
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that's pretty much them these are the
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pretty much main things that you can see
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on a 1099 div again these are the
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majority of cases but not all so if you
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have something unusual make sure you tax
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you to
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your specialist and um make sure you you
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put that on your tax return so thanks
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for watching
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