We use this Summary worksheet to summarize your entries on the Dividend Income Worksheet (Form 1099-DIV). We'll automatically carry these items to Schedule B.
If you have more than the number of dividend items that can fit on the face of Schedule B, this Summary also serves as a continuation sheet for Schedule B. In that case, only the totals are carried to Schedule B, and you should attach this Summary to your return.
Because this is just a summary form, you should make your entries on Form 1099-DIV and not on this form.
This Summary summarizes your entries on the individual copies of Form 1099-DIV. It reflects the amounts of ordinary dividends and capital gain distributions for each payer, as well as the subcategories of capital gain distributions shown on your Forms 1099-DIV.
Your capital gain distribution may include 28% rate gain, 0%/15% rate gain, Section 1202 gain (on stock held in qualifying small businesses) and/or unrecaptured section 1250 gain (25% gain).
0%/15% rate gain includes all long-term gains and losses from sales, exchanges, or conversions (including installment payments received).
0%/15% rate gain generally starts being taxed at 15% for taxpayers whose rate on ordinary income is 25% or higher.
28% rate gain includes all long-term gains and losses from sales, exchanges, or conversions (including installment payments received).
It also includes collectible gains and losses.
In general, unrecaptured section 1250 gain is the part of real estate capital gains attributable to depreciation. The 25% rate applies only to gain from sales, exchanges, or conversions.
Section 1202 gain is gain from stock held in certain qualifying small businesses.
Any portion of your capital gain distribution that isn't 28% rate gain or unrecaptured section 1250 gain we'll treat as 20% rate gain. The Section 1202 gains are subject to an exclusion that is calculated on Schedule D.
A nominee dividend is a dividend for a security that's in your name, but for which part or all of the income really belongs to someone else. For example, you may receive a 1099-DIV in your name for stock that is really owned by your child.
We'll make an offsetting adjustment to your dividend total for any nominee dividends you enter.
Restricted stock is stock that you get from your employer for services you perform and is nontransferable and is subject to a substantial risk of forfeiture. Your employer should include these dividends in the wages shown on your Form W-2. However, you may also get a Form 1099-DIV for these dividends.
We'll make an offsetting adjustment to your dividend total for any restricted stock dividends you enter.
If you invest in mutual funds, you may receive a dividend that a fund designates as Treasury interest. When you indicate on the Dividend Income Worksheet that you have received such a dividend, we include the dividend in a special subtotal that you'll need to prepare your state tax return. The reason for the separate subtotal is that Treasury interest is tax-exempt for state income tax purposes. If you use one of our state programs, we'll take care of the tax exemption for you.