topic Can I use consolidated brokerage account numbers or must I use separate TT entry for each mutual fund that has percentage government securities? in Get your taxes done using TurboTax

Can I use consolidated brokerage account numbers or must I use separate TT entry for each mutual fund that has percentage government securities?

Discouranged — Mon, 17 Feb 2025 16:21:49 GMT

My state's income tax lets me deduct mutual fund income originating from government securities. Last year Vanguard went to using consolidated brokerage accounts rather than individual mutual fund reports. My tax statement provides consolidated entries for all relevant 1099-DIV boxes. It also provides supplemental information for each mutual fund when relevant to tax return preparation. Many of the mutual funds I hold have government securities in their portfolio. Prior to last year, I used a separate TT 1099-DIV entry for each mutual fund and had no problem reporting the relevant government security income earned from government securities. For this year's return, using TT, can I use the consolidated 1099-DIV brokerage account numbers for anything at all, or must I still prepare a separate 1099-DIV entry for each fund that has government security income and ignore the consolidated numbers?

Should I enter the consolidated numbers on a "brokerage account" DIV and in addition, use a separate 1099-DIV entry for each fund with government security income but only fill in the fund's identifying information and the government security income numbers? I don't want to do anything that would double report any income category!

Re: Can I use consolidated brokerage account numbers or must I use separate TT entry for each mut...

RobertB4444 — Mon, 17 Feb 2025 17:03:21 GMT

In order to separate the government securities you are going to have to enter each one separately. The only thing you will use the consolidated form for is figuring all of those out. You will not enter the consolidated numbers into TurboTax atall.

@Discouranged

Re: Can I use consolidated brokerage account numbers or must I use separate TT entry for each mut...

Discouranged — Mon, 17 Feb 2025 17:24:01 GMT

Thanks for the info. Unfortunately, I see another issue that I believe may complicate the issue. I'm not sure if sufficient itemized info is being provided in the supplemental info to accurately make the necessary calculation. Example: one of the mutual funds that has supplemental data for income from U.S. government securities lists the %, and breakdown of which Federal agency paid, but doesn't specify the total ordinary dividends (box 1a) paid by that fund. When I go to the section of the tax package providing "detail for dividends and distributions" for that specific fund, the data provided is date, dollar amount, and transaction type. The transaction types listed are qualified dividend, non-qualified dividend and foreign taxes paid. However, TT wants me to use the total ordinary dividends number to make the calculation. Can I assume that if I add the qualified and the non-qualified dividends amounts that the sum will equate to what would be in the 1099 DIV box 1a if I had access to the 1099-DIV just for that fund? (I hope so!) I see that some other funds also itemize section 199A dividends (which I would also add to the qualified and non-qualified dividends if that line item were present for the fund in question).

Re: Can I use consolidated brokerage account numbers or must I use separate TT entry for each mut...

DaveF1006 — Tue, 18 Feb 2025 17:59:28 GMT

Yes, qualified dividends are included in the amount reported in Box 1a of Form 1099-DIV. Box 1a reports the total ordinary dividends, which include both qualified and non-qualified dividends2. Box 1b specifically reports the portion of the dividends in Box 1a that are considered qualified dividends.

Section 199A dividends are reported in Box 5 of Form 1099-DIV. These dividends are also included in the total ordinary dividends reported in Box 1a. Section 199A dividends are typically paid by Real Estate Investment Trusts (REITs) and are eligible for the Qualified Business Income (QBI) deduction.

@Discouranged