Does 1099-Div box 1a and 1b are the same? When I entered the div. from box 1a, my Federal tax due changes. Then I entered box 1b, my Fed tax due changes again - TWICE?

Forum|Forum|7 years ago
June 5, 2019
12 replies
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TurboTax Business Windows

RachelW33

Alumni - Expert

No, Boxes 1a and 1b are not the same. Box 1a reports the "Ordinary Dividends" paid to you. Box 1b designates which part of the dividends in Box 1a are considered "Qualified Dividends". This is because the portion of your Dividends that are deemed "Qualified Dividends" are taxed at a lower tax rate.

Although it may appear that your Qualified Dividends are being taxed twice they are not. The amount of your "Qualified" Dividends are separated out so that they can be taxed at the preferential capital gains tax rate. When you have Qualified Dividends and Long-Term Capital Gains, your tax is calculated on the Qualified Dividends and Capital Gains Worksheet.

If you entered your Form 1099-Div Box 1 only, your tax liability would increase. After entering Box 1b, your tax liability would decrease.

Please comment below if this doesn't answer your question so that I can assist you further.

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maria2Author

Level 2

Ok, I got it.  Except, before i enter the 1099 DIV, my Fed. Refund box said $715.
1.  I entered the div amount in box 1a, my Refund box went down to $603 -  that's ok.
2.  But when I entered the div amount in box 1b ( exact same amount as in 1a), now I have a Federal Tax Due of $44.
This doesn't make sense to me.