1099-DIV 1a and 1b being added incorrectly

[srisankaran]

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]

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.

1. On the menu bar on the left that shows.
   1. My Info
   2. Federal
   3. State
   4. Review
   5. File
2. Select Tax Tools
3. On the drop-down select Tools
4. On the popup menu
5. Select View Tax Summary
6. On the left sidebar
7. 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.

[srisankaran]

@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]

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.

[JohnB5677]

I did not get that same result.  My Income and expense summary worked correctly.

The summary showed $2,534.00 for a total.

Individually - Stocks $412.00

Interest $1,123.00

Dividends $999.00

Total $2,534.00

[SteamTrain]

@srisankaran 

....and if you are looking at the Desktop software's Dividends total in the main menu display?

............that total is the sum of all box 1a and box 12 values (Not box 1a and 1b)

[srisankaran]

@JohnB5677 Thanks.  Glad the totals are working out for you.

After re-reading your earlier reply I see now how I can preview my 1040 (I was struggling to find that once I got to the Tax Tools).  Now I can review what will actually being sent to the IRS.  Even if the summary TurboTax is reporting were incorrect (still reviewing that), it doesn't matter as much if the actual 1040 is correct.

[srisankaran]

@SteamTrain Thanks for your replies

The version of TurboTax I am using:

Online Premier

you don't provide enough information:

I am referring to the income summary page.  Unable to share more details.  That said, I think I am good to go based on the responses so far.  I am going to preview the 1040 (lines 3a, 3b as you too have pointed out) before filing the return to ensure that what will be sent to the IRS is to my satisfaction.