Perhaps this will help. Perhaps not.
Correct: The total $$ from box 1a on the 1099-DIV go directly to line 3b on the 1040.
This is the way it is handled for everyone....and all brokerages.
That total is required to be there on line 3b by the IRS, and the total amount does add into your full AGI.
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The $$ from box 1b on the 1099-DIV, go to line 3a on the form 1040.
That tells the software, to treat that sub-portion of the total ordinary dividends in a special way on a separate tax calculation worksheet. So it all works out properly the way the IRS wants it to be done.
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Calling the box 1a $$ "Ordinary" dividends confuses a lot of folks.
But that's up to the IRS.
____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*
