Most K-1 packages include instructions on were each of the reported items goes on the various tax forms. Some include pictures so that you can see which forms the different items go into. If you use Turbo Tax, it takes you through a series of questions and the program puts the numbers in the right forms.
"I just received my first K-1 - I'm a new investor. I know I claim the capital gain or loss on Schedule D; but where do I report the dividend received? On Schedule B or another form?"
Oh dear, you have it all wrong. The (unadjusted) capital gain is not simply transferred to schedule D (or the new form this year). You have to use the basis adjustments in the sales schedule of the K-1 and also capture ordinary income on form 4797.
Payments are not dividends. Distributions are not taxed directly however you are responsible for your share of partnership income. All the box 1-20 numbers on the K-1 have to be entered in to the appropriate forms. Turbotax makes it relatively easy, however if you have absolutely no idea what to do, I suggest getting a professional do your taxes.
Note that the IRS receives your K-1 so it is not advisable to brush this off.
Sorry.... yep, the box 6a and 6b were not zero. The numbers are equal, which makes that a fully qualified dividend.
That box 6 A and 6B info goes on Schedule B part II. Be sure to use the Qualified Dividends and Capital Gain Tax Worksheet found in the instructions for Form 1040 to calculate the tax on qualified dividends at the preferred tax rates. TurboTax would do that for you.
I accidentally put this reply onto a different thread first. This is where it goes.
I suggest you use an on-your-computer version of TurboTax if you are going to stick with this kind of investment. TurboTax Deluxe is good. Check Sams or Costco.
It is possible to do this stuff by hand using information from the graphic guide that came with your package, but it is not simple -- especially if you plan to get more MLPs.
In direct answer to your question, your number from box 19 is a distribution, and not a dividend. It does not get reported on your taxes. It does affect your basis, which is being tracked for your by NRGY. It will affect future taxes (I am presuming you still hold NRGY).
Box 6A and 6B 7, 8, 9* would go on your taxes, but I think those are probably blank(or zero) on your K-1.