1099-DIV questions (MSFT)

[Amethyst]

To owners of MSFT:

The 1099-DIV from Morgan Stanley for my MSFT shares is confusing me.

First: it shows the exact same amount in box 1a (ordinary dividends) and box 1b (qualified dividends). I was under the impression that all MSFT dividends are qualified.

Second: The 1099-DIV further puzzles me, in that MSFT pays dividends 4X yearly, yet the form only cites payments made in March and June, 2023.

Can someone straighten me out on what it all means and how to enter it on my return?

Thanks!

 

[m3bs]

I think you answered the first question yourself. They paid $xx dividends, and they were all qualified as indicated on the 1099. The second question may have to go to Morgan Stanley for explanation. MSFT paid four quarterly dividends in 2023 with payment dates in March, June, September and December for a total of $2.79 per share.

 

[audreyh1]

Qualified dividends are included in ordinary dividends on the 1040. So as they are the same number you’re good.

 

[cathy63]

... I was under the impression that all MSFT dividends are qualified...

It depends how long you personally have held the stock. If you have not bought or sold any MSFT shares since January 2023 and you do not reinvest the dividends you receive, then all your MSFT dividends from 2023 ought to be qualified; but other investors who have traded more recently could have a mix of qualified and non-qualified divs from MSFT.

Second: The 1099-DIV further puzzles me, in that MSFT pays dividends 4X yearly, yet the form only cites payments made in March and June, 2023.

Is it possible there's another 1099-Div coming? Maybe Morgan Stanley changed account numbers between June and September or you consolidated accounts or something like that? If not, you need to call them and ask about it before you file your return.

 

[Amethyst]

So..I should enter the same amount in boxes 1a and 1b, right? Seems like I'd get taxed twice?

I will certainly question MS's bookkeeping. The online account (Etrade) clearly shows four payouts in 2023.

I think you answered the first question yourself. They paid $xx dividends, and they were all qualified as indicated on the 1099. The second question may have to go to Morgan Stanley for explanation. MSFT paid four quarterly dividends in 2023 with payment dates in March, June, September and December for a total of $2.79 per share.

 

[Amethyst]

I've had this MSFT stock for years, and I do reinvest the dividends. There wasn't any account consolidation that I'm aware of, and the online account shows the four dividend payouts. I'll straighten it out with MS eventually; but for now, I just need to know what to put on my 1040.

It depends how long you personally have held the stock. If you have not bought or sold any MSFT shares since January 2023 and you do not reinvest the dividends you receive, then all your MSFT dividends from 2023 ought to be qualified; but other investors who have traded more recently could have a mix of qualified and non-qualified divs from MSFT.



Is it possible there's another 1099-Div coming? Maybe Morgan Stanley changed account numbers between June and September or you consolidated accounts or something like that? If not, you need to call them and ask about it before you file your return.

 

[cathy63]

So..I should enter the same amount in boxes 1a and 1b, right? Seems like I'd get taxed twice?

I will certainly question MS's bookkeeping. The online account (Etrade) clearly shows four payouts in 2023.

No, you don't get taxed twice. Total ordinary dividends goes on line 3b of your 1040, qualified dividends go on line 3a. Then when you get to line 16, you (or your tax software) fill out the Qualified Dividends and Capital Gain Tax Worksheet or the Schedule D Tax Worksheet and it all gets handled properly there.

 

[TheWizard]

Just follow the instructions for the tax software you're using.
It's pretty easy...

 

[teej1985]

I've had this MSFT stock for years, and I do reinvest the dividends. There wasn't any account consolidation that I'm aware of, and the online account shows the four dividend payouts. I'll straighten it out with MS eventually; but for now, I just need to know what to put on my 1040.

Your 1099-DIV from previous years would have been exactly the same....All qualified dividends are ordinary dividends, but not all ordinary dividents are qualified dividends.

 

[Al18]

It looks like you need to contact MS customer service to get a corrected 1099-DIV.

 

[SecondCor521]

To owners of MSFT:

The 1099-DIV from Morgan Stanley for my MSFT shares is confusing me.

First: it shows the exact same amount in box 1a (ordinary dividends) and box 1b (qualified dividends). I was under the impression that all MSFT dividends are qualified.

Second: The 1099-DIV further puzzles me, in that MSFT pays dividends 4X yearly, yet the form only cites payments made in March and June, 2023.

Can someone straighten me out on what it all means and how to enter it on my return?

Thanks!

There's a Bogleheads thread that talks about a transition that took place related to ETrade and Morgan Stanley in 2023. The post here says to expect a 1099 from both ETrade and Morgan Stanley:

https://www.bogleheads.org/forum/vi...sid=075992efac823882af3751cd948999b2#p7330346

So what it sounds like to me is that the 1099 you're looking at is only part of the picture, and the other 1099 that you should get any day now (or might need to access online depending on your mail setting) will have the remaining part.

When you get the second 1099, just enter it in addition to the one you already entered. Any decent tax software can handle it (and will add the various numbers together for you).

I suspect that since MS acquired ETrade and you said the 1099 you received shows the MSFT dividends from the first part of the year, you therefore received the ETrade one even though it probably says MS at the top. If you look at all of it, it might show the ETrade name somewhere on it.

Another thing that sometimes happens in these situations is that the two 1099s will come in the mail close together, and the taxpayer unwittingly thinks it is a duplicate mailing and tosses one or the other. Do you happen to recall receiving a "duplicate" 1099 from MS?

 

[frank05]

You should also check that in the etrade to MS transition your delivery preferences for tax documents were changed to electronic.

 

[teej1985]

It looks like you need to contact MS customer service to get a corrected 1099-DIV.

What needs to be corrected?

 

[Amethyst]

Thanks, this is the most likely explanation. I haven't tossed anything that looks even vaguely tax-related. I like to get a paper 1099 in addition to info on the web sites.

There's a Bogleheads thread that talks about a transition that took place related to ETrade and Morgan Stanley in 2023. The post here says to expect a 1099 from both ETrade and Morgan Stanley:

https://www.bogleheads.org/forum/vi...sid=075992efac823882af3751cd948999b2#p7330346

So what it sounds like to me is that the 1099 you're looking at is only part of the picture, and the other 1099 that you should get any day now (or might need to access online depending on your mail setting) will have the remaining part.

When you get the second 1099, just enter it in addition to the one you already entered. Any decent tax software can handle it (and will add the various numbers together for you).

I suspect that since MS acquired ETrade and you said the 1099 you received shows the MSFT dividends from the first part of the year, you therefore received the ETrade one even though it probably says MS at the top. If you look at all of it, it might show the ETrade name somewhere on it.

Another thing that sometimes happens in these situations is that the two 1099s will come in the mail close together, and the taxpayer unwittingly thinks it is a duplicate mailing and tosses one or the other. Do you happen to recall receiving a "duplicate" 1099 from MS?

 

[Amethyst]

I think 2Cor51's post explains why the 1099 I have, doesn't have the full year on it.

My other question, though, is how do I enter the data from Boxes 1a and 1b, if they refer to the same dividend? My H&R Block software asks for data from all 1099 boxes.

 

[cathy63]

You enter the same number twice in the H&R Block software. Where it asks for 1a, put the number from line 1a of the paper form. Where it asks for 1b, put the number from 1b of the paper form, even if it's exactly the same as the number you just entered for 1a.

As I explained in reply #7, this is accounted for when the tax is calculated.

 

[target2019]

I think 2Cor51's post explains why the 1099 I have, doesn't have the full year on it.

My other question, though, is how do I enter the data from Boxes 1a and 1b, if they refer to the same dividend? My H&R Block software asks for data from all 1099 boxes.

Use box 1a? I don't have that software, but you wouldn't add 1a and 1b.

I'd think the next question is, "what's in box 1b."

Like Cathy said.

With TurboTax it is simpler to exit the interview and just fill in the 1099. Maybe that is also true of H&R.

 

[marko]

I will certainly question MS's bookkeeping. The online account (Etrade) clearly shows four payouts in 2023.

+1
I had a small issue with MS. They sent me a 1099 Div but there was no mention of 1099R activity. I called and they said " I don't know why they send these things out incomplete! Wait another few weeks for the final 1099s". Eventually I got all the 1009s but I don't know why they do that.