DMarkM1
Employee Tax Expert

Get your taxes done using TurboTax

You can enter those in the "Ordinary Dividends" box in the "Child Income" topic.  On the 1099B, the 199A dividends are a subset of box 1A and taxed as ordinary income.  However, the 199A dividends are separately identified to be eligible for the qualified business deduction (20% of amount deducted from income).  

 

In order to get that qualified business deduction you would need file a separate return for him and enter the form 1099B.  

 

The savings may be negligible.  For example if your tax bracket is 10% and the 199A dividend amount is $1000 the tax will be $100 on your return.  However on his return only $800 is taxed so the tax will be $80.  This is a simplified example there may be other factors. 

 

You can start a free return for him in TurboTax without filing to compare to your return with/without the dividends.  

 

 

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