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Show On the TAX SCENE " MUTUAL FUNDS QUESTION: I bought some mutual fund shares this year. I have received quarterly earnings reports showing $700 gross dividends which consist of .$100 qualifying dividends, $265 capital capi-tal gain dividends, $80 return of capi- tal and $255 non-qualifying dividends, but I have not received any money. Do I have to report any of this as income on my tax return? ANSWER: You must report $100 dividends subject to the dividend exclusion, $255 non-qualifying dividends not subject to exclusion, and $2(5 long-term gain subject to the capital gains deduction. The $80 return of capital is not taxable. |