Mutual Fund Dividends: Qualified?

[Trooper]

Is there any way of knowing which portion of monthly or quarterly mutual fund dividends are qualified...without having to wait for the 1099-DIV?

Just trying to estimate tax liability.

Thanks!

 

[Sunset]

Never thought about it, and now I see your issue.

You could use the turnover rate as a proxy estimate of the % of the total dividends that will be not qualified. Could run this number for the previous year to see how close it was to the actual number.

Or phone them up and ask, maybe they will get the hint and put this info on your quarterly statement.

 

[LOL!]

Not really, except to go by last year's percentage of qualified dividends. I have found that it really doesn't change much from year to year, so I use last year's percentage to help estimate numbers for this year.

And don't forget that you need to hold the shares for 61 days (your personal holding period) for a qualified dividend to remain qualified for you.

If you didn't own the fund last year, then you will have to get the info from the fund sponsor or perhaps you can name the fund(s) and folks here with the same fund can report the percentage.

I found it interesting that although a fund might pay a dividend per quarter with the possibility that each dividend might have a different percentage of qualified and that shareholder might sell shares between dividends that the fund companies only report one number for the percentage of qualified dividends. Same goes for the percentag of foreign taxes paid.

 

[audreyh1]

No, and I've found there is some variation. For modeling I use my prior year amount of qualified dividends. This is one issue that usually has me overpaying estimated taxes.

I do notice that a few funds will tell you how much is qualified in the distribution when they announce it, but others do not.

 

[MichaelB]

I also look at previous distributions and project forward. Most mutual funds and ETFs make that information available but a few don't, it's most irritating. I've noticed that international fund distributions have seen a decline in the % of QDI over the past few years, even Vanguard Funds.

 

[pb4uski]

+1 I'm not aware of any other approach other than looking at past history for that fund and seeing if they provide any current year information on the percentage of qualified dividends.

 

[ERD50]

I was just reading that SPY is largely qualified (I could look at my old statements), and that the non-Q is mostly from holding a small amount of REITS? Anyway, all I saw was historic, that should get you close for SPY I would think, other mutual funds/ETFs might be more variable?

-ERD50

 

[Trooper]

You all rock! Thanks for the info; just wanted to make sure I wasn't missing something.
Since the MFs in question are all VG, maybe I will have my Flagship Representative track it down

 

[Trooper]

For the Vanguard mutual fund holders, I found a link that gives the 2014 percentages of qualified dividends, by fund. I'll use those for my 2015 planning.

https://advisors.vanguard.com/VGApp/iip/site/advisor/investments/taxcenter/yearendfigures