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Returning Member
posted Apr 4, 2023 3:11:22 PM

Qualified dividends treated as ordinary income

Filing an amended 2022 Federal return by adding $2,880.00 in Qualified Dividends (with corresponding $2,880.00 listed as Ordinary Dividends). My Federal Tax increased by $971 or a 33.71% increase.  My AGI increased by $5,331. How is this possible?

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2 Replies
Level 15
Apr 4, 2023 4:39:48 PM

One thing I can think of...if you are getting SS income, check line 6b of yoru form 1040.

The increased income may have also increased the % of your SS that is getting taxed too.

Level 15
Apr 4, 2023 6:50:48 PM

look at the 1040 before and after to see what changed. increasing income can alter some other items in computing AGI.