Author Topic: Where to put qualified dividends on state forms (MD and IA)  (Read 752 times)

Gin1984

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Where to put qualified dividends on state forms (MD and IA)
« on: February 16, 2020, 04:52:27 PM »
I can complete a federal form just fine, but I do not want to pay just for both just because I can't figure out where to put the qualified dividends on either Iowa's or Maryland's 2019 tax forms.  Anyone want to help me?

G-dog

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Re: Where to put qualified dividends on state forms (MD and IA)
« Reply #1 on: February 16, 2020, 05:42:17 PM »
I did a quick Google for Iowa and found this site: https://tax.iowa.gov/expanded-instructions

Searching that for “qualified dividend” gave the attached results.

secondcor521

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Re: Where to put qualified dividends on state forms (MD and IA)
« Reply #2 on: February 16, 2020, 06:09:13 PM »
Maryland appears not to give preferential tax treatment to qualified dividends.

See Bogleheads thread here:

https://www.bogleheads.org/forum/viewtopic.php?t=268924

(My state also doesn't give preferential tax treatment to either qualified dividends or capital gains.  Oh well.)

Gin1984

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Re: Where to put qualified dividends on state forms (MD and IA)
« Reply #3 on: February 16, 2020, 06:10:35 PM »
I did a quick Google for Iowa and found this site: https://tax.iowa.gov/expanded-instructions

Searching that for “qualified dividend” gave the attached results.
I do not believe any of those are correct.

Gin1984

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Re: Where to put qualified dividends on state forms (MD and IA)
« Reply #4 on: February 16, 2020, 06:11:26 PM »
Maryland appears not to give preferential tax treatment to qualified dividends.

See Bogleheads thread here:

https://www.bogleheads.org/forum/viewtopic.php?t=268924

(My state also doesn't give preferential tax treatment to either qualified dividends or capital gains.  Oh well.)
Yes, I get that and it's fine, I just don't know where in the additions to PUT it.

secondcor521

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Re: Where to put qualified dividends on state forms (MD and IA)
« Reply #5 on: February 16, 2020, 06:27:36 PM »
Maryland appears not to give preferential tax treatment to qualified dividends.

See Bogleheads thread here:

https://www.bogleheads.org/forum/viewtopic.php?t=268924

(My state also doesn't give preferential tax treatment to either qualified dividends or capital gains.  Oh well.)
Yes, I get that and it's fine, I just don't know where in the additions to PUT it.

Qualified dividends are a subset of ordinary dividends.  Ordinary dividends are included in federal AGI.

My state, and I think Maryland might be the same - didn't look that far to check - start their calculations with federal AGI.

If Maryland works like Idaho, you don't need to add them anywhere; they're already included in federal AGI.

MoseyingAlong

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Re: Where to put qualified dividends on state forms (MD and IA)
« Reply #6 on: February 16, 2020, 06:43:11 PM »

Yes, I get that and it's fine, I just don't know where in the additions to PUT it.

Why would you ADD it anywhere?

The amount in box 1a is the total ordinary dividends. If that amount is showing up on your state tax return, you are reporting and paying tax on your total dividends.

The amount in box 1b is qualified dividends, a subset of the total dividends. It is broken out since they may qualified for favorable tax treatment. But again, they are already included in the total reported in box 1a. They are not in addition to that amount.

So can you explain more about why you think you need to add them?
Do your state returns not start from the federal totals?

G-dog

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Re: Where to put qualified dividends on state forms (MD and IA)
« Reply #7 on: February 16, 2020, 06:55:01 PM »
I did a quick Google for Iowa and found this site: https://tax.iowa.gov/expanded-instructions

Searching that for “qualified dividend” gave the attached results.
I do not believe any of those are correct.

Ah, sorry. Maybe there is a better search term to try on the website.