Skip to main content
Message Font: Serif | Sans-Serif
No. of Recommendations: 0
One of my stocks did something odd. We have been issued new 1099s for dividends of that stock in 2009 and 2010. What they have done is they have reclassified some portion of the dividends as "return of capital", and advised us to refile our returns since our dividends are now much less (and so we should get some of our tax money back). Never heard of such a thing, but apparently it's legit.

Anyway, I need to open my Turbo Tax and revise the 1099 inputs, and then refile. Am I correct that the monies I get back from this only affect taxable income this year (2011)? Or do I have to move the new 2009 numbers into the appropriate 2010 lines too? My AGI is going to change, and my refund (or amount paid) will also change, and certainly any refunds are taxable the following year. But I'm assuming that since I would be receiving these funds this year that this is when they are taxed. Yes?

1poorguy (not looking forward to this, but it's a few hundred bucks so I'm gonna do it)
Print the post  


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.