Is income as a Name from Lloyd's of London subject to the 'qualified dividend' U.S. income tax rates?

Question

Lloyd's of London reports that income for U.S. taxpayers may be treated as a qualified dividend, which would be at the 15% tax rate. If so, then on which Schedule should the income be reported?

Answer 1

When you receive the dividend payment it will tell you if it's a qualified dividend or not. Do NOT depend upon a general statement from a press release! What it says on the statement that accompanies the payment is what you have to go with.

Ordinary dividends are reported on Schedule B.

Qualified dividends are entered on line 9b of Form 1040. You then have to use the worksheet on page 38 of the Form 1040 instructions to calculate your tax.

Answer 2

CA taxes all dividends and capital gains as ordinary income. There are no preferential rates at the state level.

Answer 3

if it is a dividend, then use 1099 DIV
if it is an unspecified income like a profit sharing, you will need to report it on a 1099 MISC.

Schedules are reserved for deductions actually.