Strange 1099-DIV

[Corduroy Frog]

Assume FROG Mutual Fund dividends are $100, with $90 being "Qualified"..

I am accustomed to seeing Dividends reported in the following manner:  Frog Dividends $100, Qualified Dividends $90.

But now I am seeing a 1099-DIV as follows:  Frog Dividends $10, Qualified Dividends $90.

Has something changed this year, or is the issuer of the 1099-DIV improperly reporting?

 

 

[BrewOne]

started seeing them last year.  Not proper, according to instructions for Boxes 1a and 1b (specifically says to include amounts in box 1b in 1a total).  The brokers probably just want to keep us on our toes.

[schirallicpa]

https://images.app.goo.gl/qa4qp1MY4jq4Dcc88

[Corduroy Frog]

2 hours ago, BrewOne said:

started seeing them last year.  Not proper, according to instructions for Boxes 1a and 1b (specifically says to include amounts in box 1b in 1a total).  The brokers probably just want to keep us on our toes.

I thought so Brew.  The issuer is a major stockbrokerage company.

[Lion EA]

Oh, darn, one more thing to watch out for! Thanx for alerting us to that, Frog.

[BulldogTom]

41 minutes ago, Corduroy Frog said:

I thought so Brew.  The issuer is a major stockbrokerage company.

Which one?   I want to watch out for them.

Thanks

Tom
Longview, TX

[Corduroy Frog]

Tom, it might be the biggest one out there -- Schwab.

[jklcpa]

Wow, obviously Schwab's reporting system isn't categorizing the dividends properly.  They merged with, or bought out, Ameritrade during 2023, so I suspect that this error may be related to that and that a correct form will be issued. 

[Abby Normal]

My Schwab 1099 is fine. It even says that line 1 includes 1b, 2e and 5.

[BulldogTom]

3 hours ago, Corduroy Frog said:

Tom, it might be the biggest one out there -- Schwab.

I just finished entering a Schwab consolidated form.   There are very few Qualified Dividends (800 non- qualified, 27 qualified).   Looking at the supplemental schedule the funds are mostly US based and it just looks a little funky.   

The return is going to be on hold for a little bit while the client gets some more documents.   

HMMMMM.....

Tom
Longview, TX

[DANRVAN]

1 hour ago, BulldogTom said:

the funds are mostly US based

There are some exceptions.

Do they meet the holding period requirement?

[BulldogTom]

24 minutes ago, DANRVAN said:

There are some exceptions.

Do they meet the holding period requirement?

I am not saying it is wrong, I am just saying that I normally see about 50-75% qualified dividends in a normal portfolio of mostly domestic stock funds.   

Tom
Longview, TX

[Lee B]

Corrected 1099s from brokerage firms are sometimes issued between the middle and the end of March.

[Abby Normal]

4 hours ago, Lee B said:

Corrected 1099s from brokerage firms are sometimes issued between the middle and the end of March.

I've seen them over a year late. But I've also never seen worth amending for.

[Catherine]

On 2/27/2024 at 4:10 PM, Abby Normal said:

But I've also never seen worth amending for.

I had one client who, for 6-7 years, got corrected forms in mid-May that were always major corrections. That client got put on extension & we filed after corrected forms arrived. 

[Catherine]

That brokerage may still be that messed up; elderly clients passed on, which stopped the issue for them.