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QUESTION DETAIL
Related User
Votes
I got a final K-1 letter in 2009 for 1041 from a closed trust. Listed under Part III: share of current year income, deductions, credits and other items as follows: Interest Income: $1,441, Ordinary dividends: $212, and Qualified Dividends: $20,065. What
ANSWER
The BIDaWIZ Team's Answer:
Yes; if you received the proceeds, you owe taxes on the investment income.
The interest and dividends are reported on Schedule B, of your Form 1040.
The qualified dividends are taxed at 15%. The other income is taxed at whatever
your highest marginal tax rate is.
