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New Member
posted Apr 12, 2019 9:19:37 PM

Tax Year Prior to 2020: Removal of duplicate dividends caused my taxes owed to increase. How is this possible?

While reviewing my forms before e-file I found that I had some duplicate dividends. Upon their removal my taxes owed increased. How is this possible?  I tested my this over and over using a copy.  I cannot understand why less income increases my tax burden.  Is this a bug in Turbo Tax?

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2 Replies
Employee Tax Expert
Apr 13, 2019 10:23:15 AM

Although it is rare that removing income would increase your tax liability, it could happen.   All entries interact with each other on the tax return.  Without seeing your actual return, it is impossible to tell. 

 

One example is if some or your dividends were from REITs, this would be the most common reason for an increase in taxes. REITs (Real Estate Investment Trusts) often have a Qualified Business Income (QBI) component that is a new tax deduction for 2018.  If you remove them, it also reduces the credit.  

New Member
Apr 17, 2019 8:50:11 AM

Thank you for your answer.