TurboTax refers to a "required holding period" for a mutual fund. That refers to the time I owned the mutual fund shares, or to the time the mutual fund owned its shares?

Forum|Forum|1 year ago
February 22, 2025
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After importing a 1099-DIV, TurboTax asks "Do these uncommon situations apply?" and one check box says "Some qualified dividends or section 199A dividends are from securities that didn't meet the required holding period." Under which circumstances would I see 199A dividends in Box 5 of my 1099 and yet want to put a checkmark in that check box that TurboTax is offering me?

AmyC

Employee

You need to actually select the learn more button, It explains the holding period for most stock, preferred stock and Sec 199A (REIT) dividends. Compare your investment to the rules. If all of your 199A dividends meet the rules under learn more, select none of these apply.

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esksoftwareAuthor

I will give a tentative answer to my own question. I'm going to proceed with my tax return, assuming that TurboTax is asking about MY holding period for my mutual fund, not the holding period(s) that my mutual fund had for its various company shares.

MonikaK1

TurboTax is asking about your holding period. The following explanation appears in the "Learn More" link that appears next to the option regarding some qualified dividends being from securities not meeting the holding period:

For most stock, including stock held in mutual funds, the holding period is at least 61 days during the 121-day period that begins 60 days before the ex-dividend date (the date you must have owned stock to get a dividend).

An example also appears, along with further information for preferred stock and REIT dividends.

Please see this tax tips article for more information.

@esksoftware

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