topic I entered cash liquidation distributions from1099-DIV Box 9. "We'll handle your this later. Go to Investment Income under Wages & Income." But where, exactly? in Get your taxes done using TurboTax

I entered cash liquidation distributions from1099-DIV Box 9. "We'll handle your this later. Go to Investment Income under Wages & Income." But where, exactly?

jpmac88 — Mon, 16 Feb 2026 18:07:07 GMT

Where enter cash liquidation distributions from 1099-DIV Box 9?

Re: I entered cash liquidation distributions from1099-DIV Box 9. "We'll handle your this later. G...

DaveF1006 — Mon, 16 Feb 2026 18:35:54 GMT

You will enter this in your 1099 DIV entry.

Go to Federal>Wages and Income
Investment and Savings if using online or Interest and Dividends if using the desktop program
Choose Dividends 1099DIV
When you are in the Dividend screen, check the box that is labeled My form has info in other boxes (this is uncommon).
Now, Box 9 will appear, allowing you to enter the information.

Re: I entered cash liquidation distributions from1099-DIV Box 9. "We'll handle your this later. Go to Investment Income under Wages & Income." But where, exactly?

jpmac88 — Tue, 17 Feb 2026 10:26:32 GMT

Thank you, Dave, for taking the time to reply, I appreciate it.

Just FYI, I'm using the online version after using the desktop version for many years.

I followed your steps exactly and entered the 1099-DIV. The info I had entered prior to asking my question was still there, including the box 9 info. So, I was confident I was on the correct path.

However, once I continued, I got the same message as before:

We'll handle your cash liquidation distributions from Sxxxx LLC later.

Just remember to go to the Investment Income section under Wages & Income.

Keep in mind that your cash liquidation distributions may impact the basis of your stock or it may be taxable.

So, as directed, I went to the Investment Income section under Wages & Income - which is precisely where I started based upon your directions. I went back into the 1099-DIV I had entered and the data was still there. And again, as I continued, I received the message that "we'll handle this later." It's just a loop.

Eventually, I completed all my entries and got to the end where TurboTax reviews anything that might need checked. I was not prompted to check out this cash liquidation distribution any further.

So, is this "we'll handle this later" message correct? Is there something else I need to do to ensure this is accurately reported?

Again, THANK YOU, Dave!

Re: I entered cash liquidation distributions from1099-DIV Box 9. "We'll handle your this later. G...

RobertB4444 — Tue, 17 Feb 2026 15:49:24 GMT

The message was to let you know that if it was necessary the system would route you around to match up the liquidation distributions with the stock being sold but in your case that wasn't necessary. You should be all good.

Re: I entered cash liquidation distributions from1099-DIV Box 9. "We'll handle your this later. G...

jpmac88 — Tue, 17 Feb 2026 21:38:09 GMT

THANK YOU! That's a relief. I appreciate the help.

Re: I entered cash liquidation distributions from1099-DIV Box 9. "We'll handle your this later. G...

snoop33245 — Sun, 29 Mar 2026 22:15:43 GMT

"if it was necessary the system would route you around to match up the liquidation distributions with the stock being sold but in your case that wasn't necessary"

Except that help for that item says that it is necessary, but TurboTax is still not routing me anywhere.

TurboTax help says below. For me, both of those are true (cost basis is 0 and this is the final distribution). Therefore, distribution is taxable, but TT is not routing me (and it never asked me if this was final distribution or what my cost basis was)!

What's a liquidation distribution?

When a corporation, bank, or credit union undergoes a partial or complete liquidation, you may receive a liquidation distribution. Oftentimes, this distribution isn't taxable; instead, it reduces the basis of any stock you own.

However, in the following cases, the distribution is taxable, which means you'll need to report it as a liquidation sale when you report your investment income:

Your cost basis in the stock is zero or less than the distribution amount; or
This liquidation is a final distribution from the company

Re: I entered cash liquidation distributions from1099-DIV Box 9. "We'll handle your this later. G...

PatriciaV — Mon, 30 Mar 2026 18:40:10 GMT

When reporting a liquidating dividend from Form 1099-DIV Box 9 (or 10), first understand any liquidating distribution you receive is not taxable until you have recovered the basis of your stock. After the basis of your stock has been reduced to zero, you must report the liquidating distribution as a capital gain.

If the total/final liquidating distributions you receive are less than the basis of your stock, you may have a capital loss. You can report a capital loss only after you have received the final distribution in liquidation that results in the redemption or cancellation of the stock.

In other words, the liquidating distribution may or may not be a reportable transaction this year. This is why the amount entered in box 9 of the 1099-DIV entry does not flow to any other form, schedule or worksheet. Basically, it's informational - it is used to determine/calculate your gain or loss.

Once you have determined you have a reportable transaction and calculated your gain or loss (cost basis = 0), you will report it the same way you would report the sale of common stock or other investments, as follows:

Type "Investment sales" in the search window and click Enter
Click on "Jump to Investment sales"
On the page with "Did you sell any investments in 20XX?" Answer Yes, or
If you have already entered investment sales, click on "Add more sales"
Indicate "Other" and click "Continue"
If asked, answer No to "Did you get a 1099-B..."
Enter a name of the person or entity that brokered the sale (enter anything you want, or you can leave this blank)
On the "Now we'll walk you through entering your sale details" Indicate "Other"
The interview will walk you through entering the details of reporting your gain.

Reporting the transaction as described above will result in TurboTax populating both Form 8949 and Schedule D.

You will also need to complete Form 7203 - S Corporation Shareholder Stock and Debt, which is supported by TurboTax.

from Expert DavidD66