I'm completing my 2025 return with TurboTax online.
My Schwab 1099-DIV reports
Box 1a Total Ordinary Dividends $23,110.94
Box 1b Qualified Dividends $22,872.82
Box 2a Total Capital Gains $0.00
Box 7 foreign Tax Paid $1,205.42
Because I reported $1,205.42 in foreign Tax Paid, turbotax instructs me to "...enter the portion of the $23,263.04 dividends and distributions that was from a foreign country or U.S. possession." I received $9,348.62 in foreign dividends and I entered that into turbotax. But when turbotax does my Federal Review, it finds a problem here and tells me I need to review that entry. When I review it, turbotax says, this entry "should not be larger than the dividends and capital gains reported on this Form 1099-DIV ($0.00) ." I don't understand why it is flagging this as an error. Although I did not have any capital gains on this 1099-DIV, I did have over $23,000 in dividends. I tried zeroing out this entry ($0.00 of Foreign Dividends), which is not true but it passes the turbotax Federal Review. But when I do that I lose $941 from my Federal Refund. Why is turbotax flagging the $9,349 of Foreign Dividends as an error? What do I need to do to enter the foreign dividends and regain the $941 in my Federal Refund?
