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How do I file taxes when I received under $10 in dividends with no 1099-DIV from Vanguard?

I need some help figuring out a tax reporting issue. I opened a brokerage account with Fidelity in late July 2024 and ended up earning about $7.85 in dividends that automatically reinvested in the ETFs I purchased. Since this amount is below the $10 threshold, Fidelity isn't providing me with a 1099-DIV form, but I know I still need to report this dividend income on my taxes. The problem is I'm not sure exactly how to do this in my tax software (using TurboTax online). When I go to report income, it mainly asks me to upload or manually input information from tax forms like 1099s or W-2s. To complicate things further, I currently work internationally and don't receive a W-2. I report all my regular income using the Foreign Earned Income Exclusion on Form 2555. This is my first time dealing with investment income, so I'm a bit lost on how to properly report these small dividends without an official form. Any guidance would be really appreciated!

Yara Nassar

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You're doing the right thing by trying to report all income, even small amounts! Even though you don't have an official 1099-DIV, you can still report those dividends. In TurboTax, look for an option to "Enter income without a tax form" or something similar - most tax software has this capability. When you find that section, you'll want to enter the dividend as "ordinary dividends" - this is typically what most ETF distributions are classified as. If you log into your Fidelity account, you should be able to see a year-end summary or transaction history that shows the exact amount and possibly the classification of those dividends. For amounts this small, the tax impact will be minimal, but it's good practice to include everything for accuracy and to establish good habits as your investments grow.

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Thanks for this info! But what if some of the dividends were qualified and some were non-qualified? Does that matter for reporting when it's such a small amount? And do I need to report each dividend payment separately or just the total for the year?

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Yara Nassar

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For qualified vs. non-qualified dividends, it does technically matter as they're taxed at different rates - qualified dividends get the preferential capital gains tax rates while non-qualified are taxed as ordinary income. Your brokerage account should break this down in your account history even without a 1099. You don't need to report each dividend payment separately - just the total for the year in each category (qualified vs. non-qualified). For $7.85 total, the tax difference is very small, but reporting correctly sets you up with good practices for the future when these amounts will likely be larger.

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Paolo Ricci

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I had almost exactly the same situation last year! I was pulling my hair out trying to figure out how to report like $8 in dividends from Schwab without a 1099. I found a really helpful tool called taxr.ai (https://taxr.ai) that guided me through reporting small investment income without official forms. All I had to do was upload my year-end account statement PDF and it analyzed all the dividend distributions, showing me exactly what to report and where. It even explained the difference between qualified and non-qualified dividends which I had no clue about. The tool walks you through entering this in any tax software - I used FreeTaxUSA but it works with TurboTax too.

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Amina Toure

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Does this taxr.ai thing work for other investment stuff too? I have some crypto gains I'm confused about reporting and wondering if it could help with that too?

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I'm skeptical about using third-party tools with my financial data. How secure is it? And does it actually connect to your tax software or just give instructions?

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Paolo Ricci

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It definitely works for crypto transactions too! It can analyze exchange statements and help categorize your transactions as short-term or long-term capital gains. Really simplified things for me last year when I had a bunch of small trades. As for security, they use bank-level encryption and don't store your documents long-term. It doesn't directly connect to your tax software - instead it gives you clear instructions for exactly what to input and where, which I actually preferred since I could double-check everything.

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Amina Toure

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Just wanted to update after trying taxr.ai for my dividend situation. It was super helpful! I uploaded my Robinhood statement (had about $12 in dividends with no 1099) and it showed me exactly where in FreeTaxUSA to enter the info. The best part was it also caught that I had some foreign tax withholding on one of my ETFs that holds international stocks - something I would have totally missed on my own. It even showed me how to claim the foreign tax credit which apparently saves me a few bucks. Definitely using this again next year when I'll hopefully have more investment income to report!

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I have to publicly eat my words about Claimyr. After being super skeptical in my earlier comment, I decided to try it yesterday because I was getting desperate about a similar dividend reporting issue. I was honestly shocked when I got a call back in about 25 minutes with an actual IRS agent on the line! The agent confirmed that for small amounts without a 1099-DIV, I should just report the total on line 3a of Schedule B and note "various" where it asks for the payer. The whole process saved me hours of frustration and hold music. I'm usually the last person to recommend services, but this one actually delivered exactly what it promised. Sorry for doubting!

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Javier Torres

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Since you're using the FEIE and Form 2555, just remember that investment income like dividends isn't excluded under that provision - only earned income from working abroad qualifies for the exclusion. So you still need to pay US taxes on those dividends, even though the amount is tiny. Also, depending on which country you're working in, check if there's a tax treaty that might affect how dividend income is taxed! Some countries have agreements with the US to avoid double taxation on investment income.

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Thanks for pointing that out about the FEIE not covering investment income! I wasn't completely clear on that distinction. Do you know if I need to fill out any additional forms because the dividends came from US investments but I'm living abroad?

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Javier Torres

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You generally don't need additional forms just because you're abroad while receiving US-source dividends. The standard reporting on Schedule B is sufficient for small amounts like yours. If you had foreign investments generating dividends or interest over certain thresholds, you might need to file FBAR or Form 8938, but that doesn't apply to your US Fidelity account. Just make sure you're reporting your worldwide income on your US return, regardless of where you physically reside when you receive it.

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Emma Davis

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Be careful about state taxes too! Even though you're working abroad, some states might still consider you a resident for tax purposes if you maintain ties there (driver's license, voter registration, bank accounts, etc). If you haven't formally changed your domicile, you might need to report those dividends on a state return too.

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Malik Johnson

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This is such an overlooked point! I got burned on this exact issue when I was working overseas. California kept claiming me as a resident because I still had my old driver's license and a bank account there. Had to file state returns for tiny amounts of investment income even though I hadn't set foot in the state for 3 years.

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Ryan Kim

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Great question! I dealt with something very similar last year with my Schwab account. Even without a 1099-DIV, you absolutely need to report those dividends. In TurboTax, when you get to the investment income section, look for "I'll enter investment income that doesn't appear on any tax forms" or similar wording. You'll enter your $7.85 as dividend income - make sure to check your Fidelity account statements to see if any portion was classified as "qualified dividends" vs "ordinary dividends" since they're taxed differently. Since you're already dealing with international tax complexities with Form 2555, you might want to consider upgrading to TurboTax Premier or consulting with a tax professional who handles expat situations. The Foreign Earned Income Exclusion doesn't apply to investment income, so those dividends will be subject to regular US tax rates regardless of where you're living. One more tip: keep detailed records of your account statements showing the dividend amounts and dates, especially since you don't have an official 1099. The IRS may ask for documentation if they have questions later.

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Luca Marino

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This is really helpful advice! I'm in a similar situation but with even smaller amounts - only about $3 in dividends from a few different ETFs. Do you think it's still worth upgrading to TurboTax Premier for such tiny amounts, or would the basic version handle this okay? I'm also wondering if there's a minimum threshold below which the IRS doesn't really care about dividend reporting, even though I know technically all income should be reported.

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