1099-DIV 1a and 1b being added incorrectly

Forum|Forum|3 years ago
February 26, 2023
7 replies
39 views

Using Turbo Tax online.

The income summary page lists interest and dividend income as a line item.

The only way I can arrive at the total TurboTax is reporting is by adding Ordinary Dividend & Qualified Dividend. But that is not how it's supposed to work.

If I understand the tax law correctly, qualified dividend (box 1b of 1099-DIV) represents the portion of ordinary dividend (box 1a) that may be eligible for reduced capital gains rates. In other words you don't add 1a & 1b.

Why is Turbo Tax adding 1a & 1b?

JohnB5677

Level 15

The income summary page not only includes interest and dividends, but also both long-term and short-term capital gains.

This summary was not intended to identify specific taxing methods, but rather to give a general idea of where the income came from. To better evaluate the taxing methods, I suggest you preview your 1040 tax return.

On the menu bar on the left that shows.
1. My Info
2. Federal
3. State
4. Review
5. File
Select Tax Tools
On the drop-down select Tools
On the popup menu
Select View Tax Summary
On the left sidebar
Select Preview my 1040.

Line 3a - Qualified Dividends

Line 3b - Ordinary Dividends

Line 15 - Taxable Income

Line 24 - Total Tax.

Line 25 - Withholdings.

Line 33 - Payments including Credits.

Line 34 - Overpayments.

Line 37 - Tax owed.

To return to the entry screens press Back on the sidebar.

If this does not completely answer your question, please contact us again and provide some additional details.

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srisankaranAuthor

Level 2

@JohnB5677 Thanks for taking the time to reply.

I realize not that I wasn't clear in my question. I apologize.

I do understand that the summary shown includes not just dividends but also interest income, long term capital gains, short term capital gains. What I meant was that by drilling into the details (by clicking the Edit/Add button) and adding each individual item listed I don't arrive at TurboTax's summary total. The only way I arrive at that number is if I "double count" 1a & 1b from the 1099-DIVs I have listed.

SteamTrain

Level 15

Unfortunately, you don't provide enough information for us to see exactly where/what you are looking at to see the totals you are asking about.

The best way to check to see if the numbers are being put in correctly, is to look at lines 3a and 3b of yoru actual form 1040, and see if the numbers are right there. If you get any forms K-1, those dividends too may add in too.

____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*