@Re40
Mutual funds have to report the Capital Gains that occurred "inside" their fund during the year (probably just their net after losses). The funds usually distribute your portion of the gains to your account during December...but some also do occasional mid-year distributions. SO, YES, you have to report any box 2a amounts, and they are taxed as long-term capital gains.
This is entirely normal behavior......and you don't have to do anything but enter the $$ in the 1099-DIV, in the various boxes, exactly as they reported them to you, and they are handled appropriately by the software
Even if you roll-over the distributions to repurchase shares, they are taxable income.
_________________
These distributions tended to be larger than normal for everyone this year.
____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*
