topic 1099-Div statement from Charles Schwab includes qualified dividends (box 1b) in total ordinary dividends (box 1a). Should I deduct Box 1b from 1a? in Get your taxes done using TurboTax

1099-Div statement from Charles Schwab includes qualified dividends (box 1b) in total ordinary dividends (box 1a). Should I deduct Box 1b from 1a?

hmetc2 — Tue, 03 Feb 2026 16:44:30 GMT

Re: 1099-Div statement from Charles Schwab includes qualified dividends (box 1b) in total ordinary dividends (box 1a). Should I deduct Box 1b from 1a?

SteamTrain — Wed, 05 Mar 2025 20:31:36 GMT

No...the TOTAL in 1a is called "Ordinary".

The sub-part, which are also "Qualified" are in 1b.

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Part of the confusiion, is the naming procedure the IRS uses.

The IRS should have just called the 1a amount as "Total Dividends" so it is clearer that the 1a amount is supposed to be everything.

Re: 1099-Div statement from Charles Schwab includes qualified dividends (box 1b) in total ordinary dividends (box 1a). Should I deduct Box 1b from 1a?

rjs — Wed, 05 Mar 2025 20:33:35 GMT

No, do not subtract box 1b from box 1a. The amount in box 1b is supposed to be included in box 1a. Just enter it the way it is. TurboTax will handle it correctly on your tax return.

Box 1b shows how much of the total ordinary dividends in box 1a are qualified dividends.

Re: 1099-Div statement from Charles Schwab includes qualified dividends (box 1b) in total ordinary dividends (box 1a). Should I deduct Box 1b from 1a?

VolvoGirl — Wed, 05 Mar 2025 20:36:11 GMT

You need to enter both boxes. Qualified Dividends in box 1b is only the portion (or all) of the amount in box 1a that may be eligible for capital gains rates. It is included in box 1a. So it is taxed at a lower rate.

Even though it shows up as income on the first page,if you have capital gains or qualified dividends the tax is not taken from the tax table but is calculated separately from schedule D. The tax will be calculated on the Qualified Dividends and Capital Gain Tax Worksheet. It does not get filed with your return.

Re: 1099-Div statement from Charles Schwab includes qualified dividends (box 1b) in total ordinar...

MayaD — Wed, 05 Mar 2025 21:01:18 GMT

No. Enter the information as reported on your form. TurboTax will handle it correctly on your tax return.

Box 1a of your 1099-DIV will report the total amount of ordinary dividends you receive.

Box 1b reports the portion of box 1a that is considered to be qualified dividends.