Question

Stevie received significant dividend income during the tax year. How should she report the dividend income if she has ordinary dividend income in excess of $1,500? On Form 1040, line 3a. On Form 1040, lines 3a and 3b. On Schedule B and Form 1040, line 3a. On Schedule B and Form 1040, line 3b.

Answer 1

If Stevie has ordinary dividend income in excess of $1,500, she should report the dividend income on Schedule B and Form 1040, line 3b. Line 3b of Form 1040 is specifically for reporting the total ordinary dividends. Schedule B is used to provide more details about the dividends received, especially if they exceed $1,500. Reporting on both ensures accurate documentation of dividend income for tax purposes.

Answer 2

Stevie should report her ordinary dividend income in excess of $1,500 on Schedule B and Form 1040, line 3b.

Step-by-step explanation:

If Stevie received ordinary dividend income in excess of $1,500 during the tax year, she should report this on Schedule B and Form 1040, line 3b. Ordinary dividends are reported on Form 1040, line 3b whereas qualified dividends that may be taxed at a lower tax rate are reported on Form 1040, line 3a. It is important to note that the Schedule B form is used to provide detailed information about the sources of dividend income when the total amount exceeds $1,500.