Where is dividend income reported on Form 1040?

Dividend income is reported on Form 1040 in the specific sections designated for interest and dividend income. On the form, lines 3A and 3B are specifically allocated for reporting qualified dividends and ordinary dividends, respectively. Qualified dividends are taxed at a lower capital gains rate, while ordinary dividends are taxed at the individual's regular income tax rate.

By reporting dividend income in these lines, taxpayers ensure that the IRS can accurately assess their tax liability based on the type of dividends they have received. This distinction is important for tax calculations, as it directly impacts how much tax is owed.

Understanding how to correctly report these amounts is essential for accurate tax filing and compliance, making lines 3A and 3B the correct location for dividend income on Form 1040.