1099-DIV tax question

[Skooby]

I bought a small amount of stock last year. I have never owned stock before last year.

I thought I didn't have to report any taxes unless I sold a stock. I have not sold anything.

I have a small amount in box 1a (Total Ordinary Dividends, Includes 1b) and 1b (Qualified Dividends) (Both under $15.00).

Do I report this? I did my TurboTax two days ago at my parents house. I just got an email saying my taxes were rejected. I didn't report this when I did my taxes. I will find out when I go to my parents house if that is the reason it got reject but I will still like to know if I even have to report it.

I didn't think I had to, everything I had read said only when I sold a stock...

[glock35ipsc]

A dividend is income, which is why you received a 1099, so it should be included in your return. I suspect your taxes were rejected for some other reason.

[creditcardfree]

Yes, you do have to report this. Unless, this is in a retirement account. But you wouldn't get a 1099-DIV if it were.

The stock paid a dividend to all shareholders, including you. It is taxable in the year it is received. If the stock pays a dividend every year, you will receive the same form and have to report it each year.

You will also owe taxes on the stock, if you sell it at a gain, in the year that you sell it.

I don't know if this is why it was rejected. You would have needed to amend your return if it had been accepted, so maybe this is a good thing it was rejected...you have a chance to fix!

It probably wont' change your taxes by too much given the amount.

[kork13]

Any dividend above $10 will typically be reported to the IRS. I don't think that would be the cause of getting your return rejected, however.... There's probably a mistake somewhere in the personal information section, or perhaps somewhere with your W2 information. Alot of times, a return is rejected because of typos where names don't match SSN's, the employer ID is wrong (doesn't exist), or something like that. However, definitely check over all of your numbers again, just in case you really did make some sort of mistake on them.