DaveF1006
Expert Alumni

Get your taxes done using TurboTax

Delete your 1099 DIV entry.  Take note of what the tax-due amount is before you delete​ it. If it is the same as it was before you placed the amount in Box 1A, then you know that the program didn't calculate a tax due until you added an amount in Box 1A.

 

Now prepare a 1099DIV entry recording the same amounts in Box 1A and 1B. Since it is the same amount, you will be taxed at the capital gains rate and not ordinary income.

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