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On a 1099 Div Block 1a and 1b are zero. Block 2a has 4,000 . If I received no dividends, why does turbo tax , tax the 4,000?

 
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Level 5

On a 1099 Div Block 1a and 1b are zero. Block 2a has 4,000 . If I received no dividends, why does turbo tax , tax the 4,000?

The 1099-div form is used to report both dividends and long-term capital gains distributions from a mutual fund.  Even if the fund paid no dividends, it could have long-term capital gains which are taxable and reported in box 2a.

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Level 5

On a 1099 Div Block 1a and 1b are zero. Block 2a has 4,000 . If I received no dividends, why does turbo tax , tax the 4,000?

The 1099-div form is used to report both dividends and long-term capital gains distributions from a mutual fund.  Even if the fund paid no dividends, it could have long-term capital gains which are taxable and reported in box 2a.

View solution in original post