The above article is intended to provide generalized financial information designed to educate a broad segment of the public; it does not give personalized tax, investment, legal, or other business and professional advice. Skip To Main Content. Box 1b reports the portion of box 1a that is considered to be qualified dividends. If your mutual fund investment makes a capital gain distribution to you, it will be reported in box 2a. If any state and federal taxes were withheld from your distributions, those amounts will be reported in boxes 4 for federal withholding and 14 for state withholding.
To be qualified, your dividends must be paid by a U. Moreover, at a minimum, you must own the stock for more than 60 days during the day period that begins 60 days before the ex-dividend date.
Mutual fund distributions When your mutual fund makes a distribution of its investment earnings to you and reports it in box 2a of Form DIV, the IRS generally allows you to treat the distribution like a long-term capital gain. Schedule B implications Your receipt of dividends this year may also require you to prepare a Schedule B attachment to your tax return. Got investments? State additional. Looking for more information?
Get more with these free tax calculators and money-finding tools. Learn more. Asked 9 years, 5 months ago. Active 4 years, 7 months ago. Viewed 20k times. I was wondering about the differences between DIV and B forms. In the case of mutual funds, Is DIV for reporting investment income due to trading of the securities in a mutual fund, instead of trading of the fund shares by the shareholder?
Is B for reporting investment income due to trading of the fund shares by the shareholder, instead of trading of the securities in a mutual fund? Why do we have to separately report different types of investment incomes in DIV and in B forms? Is it because they are subject to different ways of calculating taxes? Within DIV, if I understand correctly, short term capital gain is reported as part of dividend, separately from long term capital gain.
Does it mean dividend is taxed at a higher rate than long term capital gain? Measure ad performance. Select basic ads. Create a personalised ads profile. Select personalised ads. Apply market research to generate audience insights. Measure content performance.
Develop and improve products. List of Partners vendors. Your Money. Personal Finance. Your Practice. Popular Courses. Taxes Income Tax. Part Of. W- Forms. Forms — Forms —A. Key Takeaways Form B is sent by brokers to their customers for tax filing purposes.
It itemizes all transactions made during a tax year. Individuals use the information to fill out Schedule D listing their gains and losses for the tax year. The sum total is the individual's taxable gain or loss for the year. Article Sources.
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