@WBT66 wrote:
Hi Steamtrain,
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there is no schedule D produced nor is there a qualified dividends and capital gain worksheet.
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I still question why ordinary dividends and capital gains show up on lines 3b and line 7 on 1040 form to get included in the AGI amount on Line 11.
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Does this appear correct ? Why are these in the AGI if they are taxed via form 8960 ?
why does TurboTax check the box on line 7 that schedule D is not required ?
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1) No schedule D is produced unless you have gains other than those from box 2a of a 1099-DIV...like a form 1099-B/8949 for actual stock/bond/fund transactions you initiated during the year. (then the IRS has a bunch of IFs/ANDs/BUTs in their instructions...but that's what they want....page 29 at : https://www.irs.gov/pub/irs-pdf/i1040gi.pdf )
2) Total Ordinary dividends always go on line 3b. The sub-part of 3b that were also qualified as show on line 3a. Yes, I find the terminology strange...but that's the way the IRS wants it to be displayed...and has done so for many years.
3) All of 3b and 7 added into line 11? Yep.....IRS again, has done it that way for many years, then they use the other sheets to define how they are going to tax the individual amounts...so line 11 does not show how it is being broken up. Yes, this confuses many folks besides yourself.
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Are you sure you used "Forms Mode" to look for the Qualified Dividends and Capital Gain Tax Worksheet? In Forms Mode, it show up in the left window selections below the "Tax Payments" worksheet and is labeled/shortened as "Qual Div/Cap Gn"
IF not that one, then you'll have to open the "1040/1040SR Wks" and look at the big box just under line 15 for the "Tax Smart Worksheet" that worksheet shows which of 7 different calculation methods was used.....plus some extra tax forms that might add-in.
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Nope, I have no experience with the form 8960...so I don't know when it is used, nor where it's final result ends up..
____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*
