The amount in line 2 a is capital gain distribution. Capital gains taxes are calculated using an alternative method instead of the normal tax tables. So, if you have capital gains or qualified dividends, your calculated tax will be different than the tax on the IRS tax tables for ordinary income.If you have capital gains from other investment sales in addition to your 1099-DIV, we'll also take those into account when calculating your capital gains tax.
To enter your dividends reported to you on a 1099-DIV in TurboTax Desktop, once inside the return, enter 1099 div in the search box. Click on Jump to 1099 div link. Follow the onscreen instructions to enter the amount in Box 2a. See screenshot below.
