Is it correct when filling the dividend income to put the amount in box 1a and 2a on the form? Do I have report it as a dividend and capital gains?

[rwg]

My 1009-R has a gross distribution in box 1 (there is no a or b) and the taxable amount in box 2a. Filling the dividend income is telling me to put the amount in box 1a and 2a on the form. Is that correct? I thought I just had to report it as a dividend and not as capital gains too.

[Hal_Al]

1099-R or 1099-Div; which do you have?

[Anita01 · Accepted solution]

If you have an amount in both boxes, it does not mean your dividend is being double counted.  The amount in box 2a is showing you the portion of your gross dividends that can be taxed at a capital gains rate rather than at the ordinary income rate.  The capital gains amount may be equal to to or lowerthan the gross amount, but not greater.

[rwg]

It just seems that you are getting taxed twice, since the amount is on lines 9a and 13 of the 1040. And it makes the AGI higher.

[Anita01]

The AGI should be higher by the amount of the dividend because it is part of your AGI regardless of whether the tax on it is calculate according to capital gains rates or regular income rates.  The capital gains portion should show on line 9b.  If that's not the case, go back to the dividend section under income and delete the one you entered and try entering it again.

[Hal_Al]

"The capital gains portion should show on line 9b"? You mean the qualified dividends (which are taxed at cap gain rates)?

[Anita01]

Yes, thanks

[Hal_Al]

The poster appears to be trying to enter a 1099-R at the  1099-Div screen.  Or otherwise has the two mixed up.

[Anita01]

rwg-is Hal-Al correct, are you trying to enter a 1099-R and not a 1099-DIV?

[rwg]

The only way for the amount to show up on line 9b is to put it in as a qualified dividend in box 1b of the turbo tax dividend income, but my 1099-R just has a box 1 (no a or b). And when I do that my federal return increases.

[rwg]

Yes, it seems Hal was correct about the 1099-R. I had to check the substitute box in order to get the form I needed to fill out. Thanks

[Anita01]

Then.if you entered it under 1099-DIV you would have to go back and delete that form altogether and enter it again under the retirement income section, 1099-Rs.