DMarkM1
Expert Alumni

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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