[GNC] TXF Categories

[Stan Brown (using GC 4.14)]

On 2025-03-14 14:09, sunfish62--- via gnucash-user wrote:
> I believe that txf has a standard
> (https://taxdataexchange.org/docs/txf/v042/index.html) that governs
> what gets puts into the GnuCash system. There doesn't appear to be an
> entry for non-qualified dividends in the spec, although there is an
> entry for qualified dividends.
Is there anything there for ordinary dividends? That's the terminology I
see in the tax documents I've looked at. However, Form 1040 line 3
confusingly uses "ordinary dividends" to mean total dividends,
comprising both qualified dividends and ordinary a/k/a non-qualified
dividends.

On 2025-03-14 12:40, David Carlson wrote:
> I don't think the government cares about qualified income except if
> it affects costs when you take a distribution, so that may not even
> appear in the tax report.

In a regular old non-tax-advantaged brokerage account, dividends are
taxed in the year they were earned. Accounting for qualified dividends
is important to the _taxpayer_ because qualified dividends get favorable
tax treatment: see the Qualified Dividends and Capital Gains Tax
Worksheet. The dividends in that brokerage account that are not
qualified dividends are taxed at the same rates as ordinary income.

In an IRA or similar retirement account, on the other hand, there's no
need to account for dividends separately because all you have is "gains"
or "losses". When you withdraw the money, gains of whatever type are
either taxable at the same rates as ordinary income or not taxable at
all, depending on complex rules.

Stan Brown
Tehachapi, CA, USA
https://BrownMath.com