My S-Corp paid out dividends in 2023 and I'm trying to find where to file the 1096/1099-Div forms using TT Business since IRS highly discourages filling them out manually. Suggestions are welcome.
Thanks
You should have been able to create 1099 Div in Business program. But you have to use Turbo Tax Quick Employer Forms which is only available by using the online Self Employed version or the Desktop Home & Business program or Turbo Tax Business
https://ttlc.intuit.com/questions/1900677-what-is-quick-employer-forms
You can prepare W2s and 1099s by starting a new return, go to FILE - NEW TAX RETURN
On the Work on a Tax Return screen or Welcome to TurboTax screen , scroll down to the bottom and click the blue Prepare W-2/1099 button.
On the next screen, Choose where to prepare your forms, click the Online or Desktop option. You can only prepare 1099-Int & Div using the Online option.
https://ttlc.intuit.com/questions/1900412-how-do-i-create-w-2-and-1099-forms-in-turbotax-business
most likely if that was a distribution of Accumulate Earning in the AAA account Schedule M-2 column a, no 1096/1099 should be issued. the only reporting for this type of distribution is on the shareholder's k-1, line 16 cash distribution and schedule M-2 column a line 7
on the other had if the S-Corp was once a C-Corp and had accumulated earnings and profits (AE&P) it is distributing, issuing a 1096/1099 is proper - no reporting on the k-1.
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the difference is that AAA distributions are not taxable to the shareholder, they do reduce your tax basis. only if they reduce your tax basis below zero is that excess taxable. distributions of C-Corp AE&P are taxable to the shareholder.
*****************
issuing a 1099 for AAA distributions may cause issues with the IRS because they will be looking for them to be reported on your 1040 schedule B
****************************************
I should also point out that to distribute AE&P, if there is any, requires that an election be made and included with the return.
That part of the program may not be available at this point in time as the program was just recently released.
TT Business 2022 didn't have 1099-Div at all, only 1099-Misc I think it was. I'm hoping 2023 version is better.
BTW, that link is for receiving dividends, not paying them. 😏
I don't recall, frankly, but since the 2022 edition didn't have the form, the 2023 will most likely not include it either.
You can always try the site at the link below.
https://www.irs.gov/e-file-providers/filing-information-returns-electronically-fire
You should have been able to create 1099 Div in Business program. But you have to use Turbo Tax Quick Employer Forms which is only available by using the online Self Employed version or the Desktop Home & Business program or Turbo Tax Business
https://ttlc.intuit.com/questions/1900677-what-is-quick-employer-forms
You can prepare W2s and 1099s by starting a new return, go to FILE - NEW TAX RETURN
On the Work on a Tax Return screen or Welcome to TurboTax screen , scroll down to the bottom and click the blue Prepare W-2/1099 button.
On the next screen, Choose where to prepare your forms, click the Online or Desktop option. You can only prepare 1099-Int & Div using the Online option.
https://ttlc.intuit.com/questions/1900412-how-do-i-create-w-2-and-1099-forms-in-turbotax-business
most likely if that was a distribution of Accumulate Earning in the AAA account Schedule M-2 column a, no 1096/1099 should be issued. the only reporting for this type of distribution is on the shareholder's k-1, line 16 cash distribution and schedule M-2 column a line 7
on the other had if the S-Corp was once a C-Corp and had accumulated earnings and profits (AE&P) it is distributing, issuing a 1096/1099 is proper - no reporting on the k-1.
********************
the difference is that AAA distributions are not taxable to the shareholder, they do reduce your tax basis. only if they reduce your tax basis below zero is that excess taxable. distributions of C-Corp AE&P are taxable to the shareholder.
*****************
issuing a 1099 for AAA distributions may cause issues with the IRS because they will be looking for them to be reported on your 1040 schedule B
****************************************
I should also point out that to distribute AE&P, if there is any, requires that an election be made and included with the return.