Chapter four: interest and dividend income. The following forms and publications are used in the research and development of this lesson. Forms and publications are available at WWII CoV. In this chapter, you will learn when to report interest income recognized, which tax forms report income, identify the difference between 1099 INT and 1099 DIV, define when dividends are actually interest, identify the different kinds of bonds, identify the difference between ordinary and qualified dividends, identify where to report dividend income, know when a Schedule B is required to be filed with the tax return. Interest and dividends are interesting because it is very beneficial to you as a tax preparer to understand what it is and where they come from. But for the most part, it's fairly easy to process and report under the 1040 because you receive the form from your client and you enter the amount as shown in the form. We will look at the form in more detail. It is a good step with your clients to review previous year tax returns to see where they have reported interest and/or dividends. In many instances, the next year the client forgets or they did not receive it or it was lost and weren't aware. So your responsibility is to advise them on last year's interest reported from Bank of America, for example. Did you receive one this year? So, what is interest? Simply put, interest is money paid for the use of money. As you have a savings account, that money is in the bank and they utilize all those monies to make more money. And they pay you a percentage in interest for the use of your money. Some examples of interest are from bank accounts, credit unions, other types of government entities federal and state, or even...
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Video instructions and help with filling out and completing Form 1120 C Qualifying
