1041-US: The sum of Form 1041, lines 2b(1) and 2b(2) is not equal to the qualified dividend amount entered (FAQ)

Alerts and notices

Question

Why is the sum of Form 1041, lines 2b(1) and 2b(2) not equal to the qualified dividend amount I entered?

Answer

Because dividends can be qualified only if they are true dividends paid out of a corporation's earnings and profits as defined in IRC section 316, UltraTax/1041 limits the amount on lines 2b(1) and 2b(2) to the total amount of taxable dividends other than U.S. obligations.