Question
I received dividends from my credit union. How do I report this income?
Answer

Certain distributions commonly referred to as dividends actually should be reported as interest, including "dividends" on deposits or share accounts in cooperative banks, credit unions, domestic savings and loan associations, and mutual savings banks.

Interest income can be reported on Form 1040, Form 1040A, U.S. Individual Income Tax Return, Form 1040EZ, Income Tax Return for Single and Joint Filers With No Dependents, or Form 1040NR, U.S. Nonresident Alien Income Tax Return.

If your taxable interest income is more than $1,500 or you received interest as a nominee for the real owner, you must also include that income on Schedule B (Form 1040A or 1040), Interest and Ordinary Dividends, and attach it to your tax return. You can't file Form 1040EZ if your interest income is more than $1,500. Please refer to the Instructions for Form 1040NR for specific reporting information when filing Form 1040NR.