Qualified Dividends and Capital Gain Tax

The information from Form 1099-DIV Dividends and Distributions and Form 1099-B Proceeds From Broker and Barter Exchange Transactions can easily be entered into the TaxAct® program in the Investment Income section of the Federal Q&A, or directly on the forms where applicable.

The Tax Summary screen will then indicate if the tax has been computed on the Schedule D Worksheet or the Qualified Dividends and Capital Gain Tax Worksheet. To review the Tax Summary in the TaxAct program, click on Federal Refund or Federal Owed amount in the top right corner of the screen. The summary will include the text Tax computed on Qualified Dividend Capital Gain WS if the tax was calculated on either of these worksheets. Taxpayers will also see a Green Alert which explains "You have benefited from the lower capital gain tax rates..."

Once updated, TaxTopic 409 Capital Gains and Losses should include additional information.