I'm trying to complete my taxes (using TT deluxe), but noticed TT appears to be considering a non-taxable pension roll-over distribution (i.e., qualified plan rollover to 401K, full distribution, non-taxable), in determining the proper qualified dividend rate to apply.
My roll-over was in excess of 450K, which coupled with ordinary and other income exceeded $700K. Taxable income for 2023 is around $230K, which as I understand should attract a 15% rate, whereas at the $700K level it would be 20%. TT is applying a 20% rate. How do I force the software to apply the proper rate to the qualified dividends? I'm assuming this is something I'm doing wrong, or an error in the software, rather than it being tax law that these rollovers be considered income in determining the qualified dividends rate. Thanks in advance for your assistance.
