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I'm trying to figure my 2014 IRS tax bite, and make January's estimated tax payment reasonably accurate. Although no year-end statements are available yet (from Fido, TRP, and Vanguard), I know what dividends my funds returned by looking at fund activity. The problem is that I don't know how much of the dividend is qualified. Any suggestions, or must I wait for the statements?
Some funds offer guesses with their year end estimates (e.g. T. Rowe Price), but they are few and far between. And not too accurate.
I generally look at the dividends, see what portion were short term gains (if they were broken out), and treat them as nonqualified. Beyond that, I just look at last year's percentage of qualified to total dividends, and use that as a first order approximation.
Another part of the problem is foreign taxes (foreign tax credit). That's added to your dividends (reported in box 1a), but you never see the cash. Harbor Funds provided an estimate, but they're a rare exception, and for the most part this really winds up being a wild guess.
Comments
I generally look at the dividends, see what portion were short term gains (if they were broken out), and treat them as nonqualified. Beyond that, I just look at last year's percentage of qualified to total dividends, and use that as a first order approximation.
Another part of the problem is foreign taxes (foreign tax credit). That's added to your dividends (reported in box 1a), but you never see the cash. Harbor Funds provided an estimate, but they're a rare exception, and for the most part this really winds up being a wild guess.