You will not have to file this form on your tax return. You will only enter any dividends received from a corporation in thedividends and distributions section of wages and income.
To do so, navigate to the dividends and distributions section of TurboTax:
- With your return open, click the Federal Taxes tab
- Then, Wages & Income
Desktop users will then need to click I'll choose what I work on
- Click Jump to full list if you see it
- Then, scroll down to the "Interest and Dividends" section.
Click Show more to expand this section in TurboTax Online
- Next to "Dividends on 1099-DIV", click Start/Revisit/Update
At this point, reference your Form 1120-IC-DISC.
The amount on line 5 will be entered to box 1a. And, if your Form 1120-IC-DISC reports qualified dividends (see below) you will enter that amount into 1b of the 1099-DIV section of TurboTax.
Read more about qualified dividends here: Ordinary Versus Qualified Dividends
Any portion that is not on line 5, but is on line 3 of Form 1120-IC-DISC, will go to box 2a of 1099-DIV section.
For example, On Schedule K, line 3 is 1000 and line 5 is 800. Then, on 1099-div, box 1a(1b) will have 800, box 2a will have 200.
