Where would I report nontaxable distribution? Would I report it on schedule B under ordinary dividends? This is for a Federal Taxes course.?
- JudyLv 74 months ago
you normally don't.
- STEVEN FLv 74 months ago
YOU fail the class. I GUARANTEE it was covered in the chapter you ignored.
- NALv 74 months ago
Since the others gave you an answer that is 95% correct, I'll give you the rest.
1. You have the name wrong. It is actually "Non Dividend Distributions" and is reported on one of the 1099 forms (you would look at 1099-B, 1099-INT, 1099-DIV and 1099-MISC) to find it and guess what, the back of the form TELLS you how to handle the income.
2. You can't just reduce your basis forever with these non dividend distributions. The situation may change eventually and then you would have to report it. If I was your instructor, I'd mark off if you didn't tell me about this and the publication that explains it.
3. Several folks brought up mutual funds. There are such things as mutual funds that invest in tax exempt bonds. Those dividends are not the same thing.
- StephenWeinsteinLv 74 months ago
If it is a return of basis distribution, you do not repot it until the asset is sold, and then you subtract it from the basis when you figure the capital gains tax. If it is a tax-exempt interest distribution, then you report it on Form 1040 on the line for tax-exempt interest.
- How do you think about the answers? You can sign in to vote the answer.
- EvaLv 44 months ago
Non-taxable distributions from a mutual fund or investment are not reported. They reduce your basis in the investment.
- 4 months ago
Distribution from WHAT?
- Wayne ZLv 74 months ago
"Non-taxable" means just that; it is not taxable.
As such, it does not get reported on your 1040 Schedule B, D or anywhere.
Non-taxable distributions just reduce your basis in the investment.