Tax on liquidating dividend
Form 1099-DIV reports dividends information in the following places: The IRS has issued a new Form 10 which replaces the old 1040, Form 1040EZ, and Form 1040A. Forms 1040EZ and 1040A are no longer available beginning with the 2018 tax year—the return you'll file in 2019.You must still report dividend income on your tax return even if for some reason you don't receive a Form 1099-DIV.The new 15 percent tax bracket kicks in and applies to incomes above the 0-percent thresholds up to 5,800 for single filers, 2,400 for head of household filers, and 9,000 for married filers of joint returns in 2018.These long term rates remain the same in 2019, but the income thresholds for each have changed to keep pace with inflation.Regardless of whether the corporation or partnership pays you in cash, stock options, or tangible property, the transaction still represents dividends and the value must be reported on your tax return.Form 1099-DIV is issued by mutual fund companies, brokers, and corporations to investors when or more in dividend income is paid out during the year.The rates are still set at 0, 15, and 20 percent, but now long-term capital gains have their own tax brackets—at least through 2025 when the TCJA potentially expires.
You might also receive dividends from a trust or an estate, from an S-corporation, or from a partnership.
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