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taxmap/pub17/p17-040.htm#TXMP3fcd24c8 Other Distributions(p64)

You may receive any of the following distributions during the year.

taxmap/pub17/p17-040.htm#TXMP7faa1e30 Exempt-interest dividends.(p64)

Exempt-interest dividends you receive from a mutual fund or other regulated investment company are not included in your taxable income. Exempt-interest dividends should be shown on box 8 of Form 1099-INT.

taxmap/pub17/p17-040.htm#TXMP75e623d9 Information reporting requirement.(p64)

Although exempt-interest dividends are not taxable, you must show them on your tax return if you have to file a return. This is an information reporting requirement and does not change the exempt-interest dividends to taxable income.

taxmap/pub17/p17-040.htm#TXMP6e271acf Alternative minimum tax treatment.(p64)

Exempt-interest dividends paid from specified private activity bonds may be subject to the alternative minimum tax. See Alternative Minimum Tax in chapter 30 for more information.

taxmap/pub17/p17-040.htm#TXMP212675a5 Dividends on insurance policies.(p64)

Insurance policy dividends that the insurer keeps and uses to pay your premiums are not taxable. However, you must report as taxable interest income the interest that is paid or credited on dividends left with the insurance company.

If dividends on an insurance contract (other than a modified endowment contract) are distributed to you, they are a partial return of the premiums you paid. Do not include them in your gross income until they are more than the total of all net premiums you paid for the contract. Report any taxable distributions on insurance policies on Form 1040, line 21.

taxmap/pub17/p17-040.htm#TXMP164d7338 Dividends on veterans' insurance.(p64)

Dividends you receive on veterans' insurance policies are not taxable. In addition, interest on dividends left with the Department of Veterans Affairs is not taxable.

taxmap/pub17/p17-040.htm#TXMP3c55ecf6 Patronage dividends.(p64)

Generally, patronage dividends you receive in money from a cooperative organization are included in your income.

Do not include in your income patronage dividends you receive on:

• Property bought for your personal use, or
• Capital assets or depreciable property bought for use in your business. But you must reduce the basis (cost) of the items bought. If the dividend is more than the adjusted basis of the assets, you must report the excess as income.

These rules are the same whether the cooperative paying the dividend is a taxable or tax-exempt cooperative.

taxmap/pub17/p17-040.htm#TXMP6c7b093b Alaska Permanent Fund dividends.(p64)

Do not report these amounts as dividends. Instead, report these amounts on Form 1040, line 21, Form 1040A, line 13, or Form 1040EZ, line 3.

Previous Page:  Publication 17 - Your Federal Income Tax - Nondividend Distributions Next Page:  Publication 17 - Your Federal Income Tax - How To Report Dividend Income Use   to find additional occurrences of topic items.