For the 2019 tax year, I received a 1099-R form with notes and a distribution code specifically identifying the total taxable amount on the form as stock dividends. I am 65 so eligible for distribution without penalty and coincidentally have a taxed paid balance in the account that exceeds the value of the stock. I have received separate 1099-R forms from the same source for other retirement distributions which I believe fully fit the definition of retirement distributions. Why is Turbotax calculating a 5% higher tax rate if I enter the dividends as a retirement distribution compared to stock dividends? Does the IRS allow me to claim these dividends as dividends? If it must be taxed at a higher amount, how is that higher amount determined and what is the logic behind the higher amount?
