Internal Revenue Service United States Department of the Treasury
Level Basic Advanced Military International

Income Workout

Dividends and Corporate Distributions

Discussing Dividend Income

Taxpayer Interview and Tax Law Application

Leonard and Gloria are filing a joint return. Leonard and the volunteer are discussing dividend income.

Sample Interview
Volunteer Says…   Leonard Responds…
Do you and your wife own shares of stock, mutual funds, or bond funds? Yes, I have an IRA and I own shares in several mutual funds and a bond fund. My wife has an IRA. Here are the statements.
The earnings on the IRAs are tax deferred until you take a distribution. These 1099-DIVs are what we want right now. Are these the only Forms 1099-DIV that you received? Yes.
We will enter the information from each of these on the Dividend Statement in the software. It will add everything up and display it properly on your tax return. I understand, thank you for explaining the process.