Elsie received the following distributions from Virginiana Mutual Fund for the calendar year 2019: $$\begin{array} { l r }
\text { Ordinary dividends (nonqualifying) } & \$ 250 \
\text { Capital gain distributions } & \$ 170 \
\text { Nontaxable distributions } & \$ 80
\end{array}$$ Elmer, Elsie's husband, did not own any of the Virginiana Mutual Fund shares, but he did receive $1,600 in interest on a savings account at the Moss National Bank. Elmer and Elsie filed a joint income tax return for 2019. What portion of the distributions from Virginiana Mutual Fund is taxable as ordinary income on their 2019 individual income tax return?

Question

Elsie received the following distributions from Virginiana Mutual Fund for the calendar year 2019: $$\begin{array} { l r } 
\text { Ordinary dividends (nonqualifying) } & \$ 250 \
\text { Capital gain distributions } & \$ 170 \
\text { Nontaxable distributions } & \$ 80
\end{array}$$ Elmer, Elsie's husband, did not own any of the Virginiana Mutual Fund shares, but he did receive $1,600 in interest on a savings account at the Moss National Bank. Elmer and Elsie filed a joint income tax return for 2019. What portion of the distributions from Virginiana Mutual Fund is taxable as ordinary income on their 2019 individual income tax return?

Quizplus · Accepted Answer

The $250 of ordinary dividends is taxable as ordinary income. Capital gain distributions are taxable but at a different rate, and nontaxable distributions are not included in taxable income.

Elsie Received the Following Distributions from Virginiana Mutual Fund for the Calendar