J.K. Lasser's Your Income Tax 2013: For Preparing Your 2012 Tax Return

4.9 Who Reports the Dividends

Stock held by broker in street name.

If your broker holds stock for you in a street name, dividends earned on this stock are received by the broker and credited to your account. You report on your 2012 return all dividends credited to your account in 2012. The broker is required to file an information return on Form 1099 (or similar form) showing all such dividends.

If your statement shows only a gross amount of dividends, check with your broker if any of the dividends represented nontaxable returns of capital.

Dividends on stock sold or bought between ex-dividend date and record date.

Record date is the date set by a company on which you must be listed as a stockholder on its records to receive the dividend. However, in the case of publicly traded stock, an ex-dividend date, which usually precedes the record date by several business days, is fixed by the exchange to determine who is entitled to the dividend.

If you buy stock before the ex-dividend date, the dividend belongs to you and is reported by you. If you buy on or after the ex-dividend date, the dividend belongs to the seller.

If you sell stock before the ex-dividend date, you do not have a right to the dividend. If you sell on or after the ex-dividend date, you receive the dividend and report it as income.

The dividend declaration date and date of payment do not determine who receives the dividend.

Nominees or joint owners.

If you receive ordinary dividends on stock held as a nominee for ...