John M. Hoffman & Associates CPAs

Frequently Asked Questions

Investment Income (Interest & Dividends)

 

"What is the best way to get you (Hoffman) the information you need on interest and dividend income? "

As to interest and dividends we really don’t need you to try to fit the various flavors of income into the questionnaire boxes. Simply give us the 1099 forms (we like originals).

It is an excellent (and time saving) idea to cross out or put a dash (meaning zero) for those accounts that you no longer have. This way we don’t have to contact you to ask you. 

If you had interest income from a bank last year, chances are you do this year unless you closed the account, it was a one time CD, or the account earned less than $10 in which case the interest is not reportable (that means that the bank does not need to report it to the IRS on form 1099 – we leave it up to you as to whether to put the $3 on your tax return or not).

 

Interest income information is entered on Organizer Sheet 5A

Dividend income information is entered on Organizer Sheet 5B

(These examples include actual 1099 forms)