Quick Tax Question

[tweety 1]

I'm just on about to finish my taxes.

This one should be an easy one for anyone that filed taxes for dividends before.

Ok, so I received dividends and upon searching the extensive paper jungle of IRS I have determined that my dividends are qualified dividends to be put into box 9b of the 1040 tax form.

Now my tax program tells me that I cannot submit qualified dividends without filling the box 9a (ordinary dividends).

So does that mean I will have to fill in the same amount as I have in 9b into box 9a?

I was getting the impression that qualified dividends are getting a tax relief, yet when I look at the form (when having to fill in both boxes 9a and 9b) it looks like they acknowledge that my dividends are qualified dividends, yet I have to carry the full tax burden on them.

Am I overlooking something?

Thanks.

Tanja

(and don't tell me to call the misinformation line of the IRS been there, done that)

[Mr. Big Dog 10,747]

I've always followed the tax program on the dividends. Just typed the figures off the 1099-DIV onto TurboTax or TaxCut (whichever one I was using that year). Doesn't amount to a whole heck of a lot anyways but if you find out how to reduce the tax burden on those, please share. I kinda have the feeling that I am not making enough on dividends to actually benefit from the tax relief you're talking about...

[Yodrak 7]

Tanja,

The qualified dividends are a subset of the ordinary dividends. They will be taken into account in the calculation of tax owed on Line 44 - read the instruction for Line 44 that will tell you how to calculate your tax if you have declared any qualified dividends.

You are using a tax program, it should do this for you automatically.

Yodrak

I'm just on about to finish my taxes.

This one should be an easy one for anyone that filed taxes for dividends before.

Ok, so I received dividends and upon searching the extensive paper jungle of IRS I have determined that my dividends are qualified dividends to be put into box 9b of the 1040 tax form.

Now my tax program tells me that I cannot submit qualified dividends without filling the box 9a (ordinary dividends).

So does that mean I will have to fill in the same amount as I have in 9b into box 9a?

I was getting the impression that qualified dividends are getting a tax relief, yet when I look at the form (when having to fill in both boxes 9a and 9b) it looks like they acknowledge that my dividends are qualified dividends, yet I have to carry the full tax burden on them.

Am I overlooking something?

Thanks.

Tanja

(and don't tell me to call the misinformation line of the IRS been there, done that)