In 2022 I bought a preferred stock. The purchase date was between dividend payouts for the stock. As part of the purchase, I paid what the trade confirmation refers to as 'accrued interest', although it really should have said 'accrued dividend'. The stock paid dividends in 2022 but I need to reduce what was reported on form 1099-DIV by the amount of the accrued dividend that I paid as part of the purchase. In TurboTax Deluxe, desktop edition, I enter the 1099-DIV, click continue, and come to the 'do any of these uncommon situations apply to you?' screen. I choose 'I need to adjust these dividends' and click continue. I enter a positive amount for the adjustment and choose 'other adjustment'. However, the amount TurboTax uses for the dividend reduction is not what I entered. As an experiment, I entered 200.00 for the adjustment. TurboTax lists an adjustment on schedule B of 196.62. Line 3b (ordinary dividends) on form 1040 is reduced by 197 and line 3a (qualified dividends) on form 1040 is reduced by 196.
I assume that my thinking on how to reduce the dividend amount is correct but how do I get TurboTax to accept the actual adjustment I want to make?
Thank you.
