Dividend Reinvestment in ETFs

Robert Hooper on

We finally received our 1099 from TDA. There is a $16
difference between "Total Ordinary Dividends" (Line 1a) and
"Qualified Dividends" (Line 1b). I've traced the difference
to the way I entered the dividend reinvestments for 2 of our
ETFs (XLY and XLE). Apparently, a portion of each dividend
is divided between "Ordinary" and "Qualified". How do I go
back and re-enter the dividend reinvestments for both of
these securities to reflect the correct portions of the
reinvestment?

Laurie Frederiksen on

Hi,

When your dividends are reclassified on the 1099, you need to go back and edit each original entry and break it into it's component parts.

There is a convenient edit link on the 1099-DIV review page that lets you do this easily. The 1099-DIV review is part of step 2 of the tax prep process. Make sure to first identify these investments as "Not 100% Qualified" on the first page of step 2.

In the Tax prep webinar we demonstrated how to do this also.
Preparing Your Investment Club Taxes

Before you are going to be able to do the above, you are going to need to separate your dividend reinvestment entries into their two separate parts. One for the receipt of the dividend amount (broken into its appopriate components) and a second for the purchase of the shares with the total amount you received.

Laurie Frederiksen
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On Thu, Feb 26, 2015 at 6:59 PM, Robert Hooper <amigos4@comcast.net> wrote:

We finally received our 1099 from TDA. There is a $16
difference between "Total Ordinary Dividends" (Line 1a) and
"Qualified Dividends" (Line 1b). I've traced the difference
to the way I entered the dividend reinvestments for 2 of our
ETFs (XLY and XLE). Apparently, a portion of each dividend
is divided between "Ordinary" and "Qualified". How do I go
back and re-enter the dividend reinvestments for both of
these securities to reflect the correct portions of the
reinvestment?

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