Thank you both for your responses — I wanted to clarify a few things based on my specific situation and also invite others to weigh in if they’ve experienced something similar.
I am filing Schedule D, because I have additional capital gains from E*TRADE reported on a 1099-B (long-term Box D sales totaling $14,836). I also have a 1099-DIV from Charles Schwab that includes a capital gain distribution of $2,172.39 in Box 2a.
Per IRS instructions (including Pub. 550), when you’re filing Schedule D for other reasons, you can still report Box 2a directly on Form 1040, line 7, and exclude it from Schedule D, as long as it wasn’t reported on a 1099-B (which it wasn’t — it was just a distribution).
The issue I'm running into is that TurboTax includes Box 2a in both:
- Form 1040, line 7 ✅
- Schedule D, line 13 ❌
This causes it to be double-counted in the Qualified Dividends and Capital Gain Tax Worksheet, overstating my tax on Form 1040, line 16 by $1,185.
I’ve confirmed that I haven’t overridden any forms, and the return is fully eligible for e-filing. I even tried deleting and re-entering the 1099-DIV, and manually entering the amount in the Capital Gain Distributions Worksheet instead — but TurboTax still routes the amount to Schedule D, even when it shouldn’t.
Also, I understand that the checkbox on Form 1040, line 7 is only used when Schedule D is not required — and since I’m filing Schedule D, that box is rightly grayed out.
I’m still looking for a clean way to get TurboTax to exclude this from Schedule D without forcing or overriding anything — and welcome any additional insight from other community members or Intuit staff who may be able to help shed light on how to handle this scenario correctly within the software.
Thanks again to everyone helping out!
