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Level 2
posted Feb 21, 2020 5:28:58 PM

My 1099 reports the dividends on a mutual fund as ordinary income, but 100% of the distribution is return of capital. How do I enter this on TurboTax?

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1 Replies
Expert Alumni
Feb 21, 2020 5:50:11 PM

You don't have to enter the 1099-Div reporting Return of Capital in Box 3.  Use it to adjust your Cost Basis in your investment for your records.

 

Click this link for more info on Non-Dividend Distributions