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Employee
December 15, 2023
Question

SPY ETF December Dividend Treatment for California Taxes

  • December 15, 2023
  • 2 replies
  • 0 views

I have shares in the SPY S&P 500 ETF.  They declared a dividend in December 2023 for shareholders of record in December 2023 but to be paid out January 2024.  This January 2024 payment will be included on my 2023 1099 and will be 2023 income for Federal tax purposes. So my two questions are: 1) Does California also consider this as 2023 income, or is it 2024 income since that's when it will be paid?  2) if California considers this 2024 income, will Turbo Tax automatically make the needed adjustments to my CA taxes, or do I need to make the adjustments myself?  Thank you!

    2 replies

    Employee
    December 16, 2023

    I'll page @Mike9241 

    Hal_Al
    Employee
    December 16, 2023

    Q.  Does California also consider this as 2023 income, or is it 2024 income since that's when it will be paid? 

    A. Yes.  CA, like almost all states, starts with the Federal AGI.

     

    But wait for the actual 1099, before preparing your taxes.  Paid in 2024, but taxable in 2023, doesn't "sound right".