When bank of america bought mbna it gave me some money in addition to stock. how do I handle this for taxes?

Answer 1

I believe the money will be taxable as dividend, but I'm not 100% sure. Just check your 1099 and see how they classify it.

Answer 2

If you didn't get a 1099 on it, you don't have to worry about it this year - it was just a return of part of your original investment. But keep the paperwork - when you sell the BofA stock, that amount will reduce your basis from what you originally paid for the MBNA stock, since you got that money back.

If you got a 1099, then treat the money however it says to.

It's not a dividend, qualified or not qualified.