Final answer:
To report dividends over $1,500, Stevie must use Schedule B (Form 1040) and list the sources of dividend income. Details of tax withheld on the dividends should also be included on this form for accurate tax liability calculations.
Step-by-step explanation:
When Stevie receives significant dividends that exceed $1,500, she must report this income on her tax return. The correct way to report this income is by using Schedule B (Form 1040), Interest and Ordinary Dividends. This form is used to list the sources of interest and dividend income in detail if the total amount of dividends exceeds the $1,500 threshold.
It's important to accurately report all dividend income on Schedule B and carry the totals over to the 1040 tax form. In case of any tax withheld on the dividends, it should be included as well so that it can be credited against any tax liability when filing the tax return. Keeping detailed records and reporting them correctly is essential to remain.