I am also seeing the full amount of the dividend income on line 6 of IRS Form 8995 Qualified Business Income Deduction Simplified Computation.
Unfortunately the IRS Form 8995 Instructions are not helpful. The description for line 6 states:
Line 6
Enter income as a positive number and losses as a negative number.
However, when I make the adjustment recommended by DianeW777 above, the correct amounts are reported on:
- the Federal 1040 lines 3a and 3b, and
- on the Federal 1040 Schedule B Interest and Ordinary Dividends Part II, and
- on the IRS Form 8995 Qualified Business Income Deduction Simplified Computation.
Above DianeW777 states:
You should make the adjustment and enter the adjusted amount in Box 5. This will make the entry and the tax return accurate. Keep the information with your tax records.
This is also the advice from Learn more to the right of Adjustment amount at the screen Tell us about your dividend adjustment.
We're assuming you want to adjust the total income from dividends and capital gains from your 1099-DIV by entering a dividend adjustment amount.
If this is not what you want, select Back, adjust the amount of each separate income item, and uncheck the adjustment choice. Be sure to attach a statement to your return explaining each adjusted amount.
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