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Financial Planning / Tax Strategies


Subject:  Re: Possible 1099 error Date:  3/11/2013  11:45 AM
Author:  Wradical Number:  118028 of 127613

OK, you didn't sell it, BUT -
You MAY have an agreement with your broker (and if you have a margin account, you probably do) whereby your broker can use the shares in your account as the shares that somebody else sells short. In that case, the short seller has to reimburse you for the dividends, but the buyer is the party who gets the qualified dividend treatment. To you, it's ordinary income.

That MAY be what happened.

I meant to add:
Was there any explanatory info. on the 1099-MISC as to what they report there? If not, I'd just call the broker and ask.

I looked in Mergent's 2012 Dividend Guide, and there was nothing different indicated about the 4th qtr. payment, except for the special dividend amount.

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