As some of you receive your 1099 forms, you are finding that what you thought were dividends you received during the year, have been reclassified.

For example, if you hold Frontier Communications (FTR), more than 70% of what you received as been reclassified as a "Non Dividend" distribution.

Your Taxable Income Might Be Lower Than You Thought For 2011


When this happens, you need to make manual adjustments to your bivio records prior to running your taxes because there will be different tax consequences for each of the different amounts.

For each dividend entry you originally had, you will have at least two different entries. Edit the first one to include only whatever is still being classified as a dividend. Then, use the Income button on the Accounting>Investments page to create another entry for the same date for any portions of the original distribution that were reclassified. They might be entered as Returns of Capital or even Long or Short Term Capital Gains. You could have several different types of entries where you originally had only one.

These types of edits are common if you own Mutual Funds. They are less common if you own stocks, but, as in the Frontier example, they do happen.

If you have any questions about how to interpret or enter the information you see on your 1099, let us know at support@bivio.com and we'll help you figure it out.

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Laurie Frederiksen
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