Re: How can my adjusted income be higher then the total proceeds i received off my 1099-B?

How can my adjusted income be higher then the total proceeds i received off my 1099-B?

Redeemed 10000,00 from Mutual fund. 1099-B lists gain of 6966.47. My 1099-DIV lists 7420.92 as capital gains. Why is my adjusted income adjusted 14386.47 when I only redeemed 10000.00

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Capital gains reported on 1099-DIV are not redemptions - they are your share of the gains the mutual fund recognized and you are taxed on them even without redemptions. These amounts are added to your tax basis in the mutual fund.