I have a question regarding taxes qualified dividends. After I filed my return, I received a revised Form 1099-DIV that reclassified my stock dividends. They changed from ordinary dividends to qualified dividends. Should I amend my return?
Yes, you can submit a 1040X. Qualified dividends are taxed at a lower tax rate then ordinary dividends. The reclassification may result in a refund that’s worth the time and expense of filing an amended return.
The maximum tax rate for capital gains also applies to qualified dividends. So:
- If the regular tax rate that would apply to your capital gains is 39.6% or higher, the dividends are subject to the 20% rate.
- If the regular tax rate that would apply to your capital gains is 25% to 35% or higher, the dividends are subject to the 15% rate.
- If the regular tax rate that would apply to your capital gains is lower than 25%, the dividends are subject to the 0% rate.
Learn more about your options to reduce or remove an IRS estimated tax penalty. Get the facts from the tax experts at H&R Block.
If you’ve received unemployment compensation or a state tax refund, you’ll receive Form 1099-G. Learn more about Form 1099-G and how it affects your taxes.
Donating a qualified vehicle to a charity? Learn how Form 1098-C is used to report the details of your donation and how it affects your deduction.
Need help deciding if you need to file an amended return (IRS Form 1040X)? Get the facts from the tax experts at H&R Block.