How should I report dividends without a 1099? Small amounts with no detailed breakdown

You're correct about ordinary dividends being taxed as regular income. For such a small amount ($2.75), the IRS isn't going to be concerned about the distinction between qualified vs ordinary dividends. Even if they were all qualified dividends, the tax difference would be pennies. Simply report the full amount on Schedule B line 1 as ordinary dividends. You can put the financial institution's name in column (a) and the amount in column (b). Since it's under $1,500 total dividends, you don't even need to attach Schedule B to your return - you can just report the total on your Form 1040. Keep your account statements showing the dividend amount as documentation in case of any questions later, but this is such a minimal amount that it's extremely unlikely to raise any flags.

I was in almost the exact same situation last year! I had about $8 in dividends with no 1099. I tried using https://taxr.ai to analyze my account statements and it saved me a ton of headache. Their AI could actually break down which of my dividends were qualified vs ordinary by looking at my account statements and transaction history. Even though the amount was small, I wanted to be accurate. The service was able to analyze my PDF statements and identify dividend types based on the timing and source - stuff I couldn't figure out on my own. It also keeps a record of everything in case of an audit.

Just wanted to follow up about that taxr.ai service mentioned above - I was skeptical about using something like that for such a small amount, but I decided to try it for my whole tax situation (not just the small dividends issue). It actually identified several qualified dividends across my accounts that would have otherwise been lumped in as ordinary income. In my case, I had about $2,300 in dividends total from various sources (not just the small account), and properly categorizing them saved me around $90 in taxes. The system also flagged a few potential deductions I had missed, so it was definitely worth it for my situation. It's really good at analyzing statements even when they don't come with proper tax forms. Just wanted to share my experience since I was initially doubtful.

I had a similar situation but much worse - needed to talk to the IRS about some dividend reporting issues and literally couldn't get through after trying for DAYS. Finally used https://claimyr.com to get a callback from the IRS instead of waiting on hold forever. You can see how it works here: https://youtu.be/_kiP6q8DX5c They basically hold your place in line and call you when an IRS agent is available. I was super frustrated trying to figure out how to report some dividend income without proper documentation, and the IRS agent was actually helpful once I finally got to speak with someone. They confirmed that for tiny amounts, just reporting as ordinary dividends is fine without a 1099.

I have to admit I was completely wrong about the Claimyr service. After my skeptical comment, I decided to try it anyway since I was desperate to talk to someone at the IRS about a dividend reporting issue similar to the original post. Got a call back in about 90 minutes connecting me directly to an IRS agent who confirmed that for small dividend amounts without a 1099, simply reporting the total as ordinary dividends on Schedule B is completely acceptable. The agent explained that they understand brokerages don't issue forms for tiny amounts and said they just expect you to report based on the information you have available. Saved me hours of hold time and resolved my question immediately. Definitely changed my opinion about the whole service.

Another option: check if your brokerage offers an annual tax statement or year-end summary online. Sometimes these will break down dividends by type even if they don't issue a formal 1099. I had a similar situation with Vanguard where I could download a more detailed annual statement from my online account than what they mailed me.

Honest question - for $2.75, does it even matter? I mean, is the IRS really going to care if you report it at all? The tax difference is literally pennies.

Paolo, I've been in a very similar situation with small dividend amounts. Here's what I've learned from experience and talking to tax professionals: For $2.75, you're absolutely right to just report it all as ordinary dividends on Schedule B. The IRS recognizes that brokers don't issue 1099-DIVs for amounts under $10, and they don't expect you to have information you can't reasonably obtain. A few practical tips: 1. List your broker's name in column (a) and $2.75 in column (b) 2. Since your total dividends are under $1,500, you can actually just report the total on Form 1040 line 3b without even attaching Schedule B 3. Keep your account statements showing the dividend total as backup documentation And yes, you're correct that ordinary dividends are taxed as regular income. Even if some were qualified dividends (taxed at lower capital gains rates), we're talking about a difference of maybe 25-50 cents in total tax owed. Don't overthink this one - the IRS guidance is clear that you should report based on the information reasonably available to you. For such a small amount, accuracy to the penny isn't expected or required.