Qualified Dividends
Menu Path: Income > Common Income > Investments and Savings (1099-INT/DIV/B/DA)
Qualified dividends are dividends that are eligible to be taxed at a lower tax rate. Enter the full amount of your dividends on the Dividend Income (Form 1099-DIV) screen in Box 1a as Ordinary Dividends. Then enter the amount of qualified dividends in Box 1b. Qualified dividends are only a designation for determining how to tax the amount of ordinary dividends in Box 1a.
For example, if you enter $1,000 in Box 1a as ordinary dividends, and $600 in Box 1b as qualified dividends, only $1,000 will show as income on your tax return. However, the $600 of qualified dividends will be taxed at a lower rate, while the remaining $400 will be taxed at your regular tax rate.
Qualified dividends are dividends that are eligible to be taxed at a lower tax rate. Enter the full amount of your dividends on the Dividend Income (Form 1099-DIV) screen in Box 1a as Ordinary Dividends. Then enter the amount of qualified dividends in Box 1b. Qualified dividends are only a designation for determining how to tax the amount of ordinary dividends in Box 1a.
For example, if you enter $1,000 in Box 1a as ordinary dividends, and $600 in Box 1b as qualified dividends, only $1,000 will show as income on your tax return. However, the $600 of qualified dividends will be taxed at a lower rate, while the remaining $400 will be taxed at your regular tax rate.
