In calculating US Govt. interest, do I multiply the percentage my mutual fund company provided me by Total Ordinary Dividends or by the amount of Qualified Dividends?

[KarenJ · Accepted solution]

That percentage is a percentage of the total dividends. So, you multiply by the box 1a (ordinary dividends) of the 1099-Div.

The box 1b amount is already included in the box 1a amount, so you don't add them together. Nor, do you subtract 1b from 1a.

After entering the 1099-DIV, the next screen will ask "tell us if any of these uncommon situations apply to you". One of the choices will be "a portion of these dividends is US government interest". Check that then continue and the following screen will have a box to enter the amount (not the percentage, you'll have to do the calculation)

[hiroo]

I have a fund in a brokerage account so the 1099-DIV combines all the funds in the account. So it has 1a "ordinary dividends" and 1b "qualified dividends" for all funds combined.

In a later detail section, it provides the breakdown for specific funds in categories like: long-term cap gain, nonqualified dividend, qualified dividend, short-term cap gain, foreign tax withheld.  Another section gives the US Gov percentage for each fund.

I know I should multiply the "ordinary dividends" by the gov percentage, but am not clear on how to get the ordinary dividends from the nonqualified and qualified dividend numbers.  Can you clarify?