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stuboyle
1-28-12, 7:58am
I've got some qualified dividends for the first time and I'm trying to figure-out to get the lower tax treatment. The 1040 instructions say enter the amount on line 9b. Then the instructions then say that the qualified dividend amount is also entered on line 9a, the ordinary dividend line. Line 9a becomes part of your total income which is taxed as ordinary income. I don't get it. Where is the lower tax treatment come into play?

ApatheticNoMore
1-30-12, 2:21am
That's correct on where you enter the two amounts. The special treatment comes into play in the line for your Tax (was line 44, but I'm not looking at this year's, so it could have changed). The 1040 booklet (you should have one of these to do taxes by hand) should have a "Qualified Dividents and Capital Gains Tax Worksheet". This is the worksheet you use to figure out what is entered on the Tax line (line 44). It will ask you to enter what is in line 9b and take you through a series of calculations that will lead to your tax being less do the special treatment of Qualified Dividents (and Capital Gains).

I've done this calculation many years. Sigh, this is the easy stuff :0!