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Dynamics 365 Community / Forums / Microsoft Dynamics GP (Archived) / Should 1099 Dividends ...
Microsoft Dynamics GP (Archived)

Should 1099 Dividends print in both 1a and 1b, if you selected box 1b on vendor setup?

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Posted on by Community Member

I have a question that seems simple enough, but I have not found the answer.  One of my clients issued qualified dividend checks and the vendors were set up as 1099 Dividend box 1b.  After the 1099s were distributed, one of the individuals came back and asked why box 1a was not also populated.   It is my understanding that 1a is for ordinary dividends and 1b is for qualified dividends, so should both boxes be populated? 

If you read the IRS explanation it seems as though the full amount of ordinary dividends shoudl print in box a and only the qualified dividends should print in 1b.  So what do I tell my client?   should we reprint the 1099 Dividend statements?

Thanks in advance for your response.

Carolyn

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  • Suggested answer
    Chris.Hadden Profile Picture
    Chris.Hadden 726 on at

    My understanding is that 1a should always have a value. So yes, you should probably issue a revised form. 

    Here's what the IRS says: https://www.irs.gov/pub/irs-pdf/f1099div.pdf 

    Box 1a. Shows total ordinary dividends that are taxable. Include this amount on

    line 9a of Form 1040 or 1040A. Also, report it on Schedule B (1040A or 1040), if

    required.

    Box 1b. Shows the portion of the amount in box 1a that may be eligible for

    reduced capital gains rates. See Form 1040/1040A instructions for how to

    determine this amount. Report the eligible amount on line 9b, Form 1040 or

    1040A

  • Community Member Profile Picture
    Community Member on at

    Does GP allow you to print in both 1A and 1B on the same form?  This is our first year on GP and have been unable to print in both.

  • Chris.Hadden Profile Picture
    Chris.Hadden 726 on at

    I'm not aware of any limitations, however I do not have any firsthand experience in handling 1099-DIV out of GP. You may want to check out the YE Payables blog https://community.dynamics.com/gp/b/dynamicsgp/archive/2016/11/01/mdgp-ye-update-2016-payables-management and the year-end closing procedures: https://support.microsoft.com/en-us/kb/875169

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