I have a K-1 from an MLP where the Qualified Dividends on the K-1 exceed the Ordinary Dividends by $2.
This doesn't seem correct to me (and TT is flagging it that it shouldn't be more than the Ordinary Dividends). It was always my understanding that Ordinary Dividends were supposed to include all Dividends earned and then Qualified Dividends just get subtracted from that to handle the difference in taxation.
I asked assistance from the MLP agent that sends the K-1 and this is what I received:
It is not necessary for Qualified Dividends(6b) to be always less or equal to Ordinary Income(6a). As it differs from partner to partner and its based off the length of time the units are held. Regarding the error you are receiving in turbo tax, please contact turbo tax support for assistance.
Does this sound correct? Will it cause my return to be rejected/cause other issues?
Thanks!
