topic Ordinary Dividends Report in Get your taxes done using TurboTax

Ordinary Dividends Report

lewrenn — Thu, 28 Feb 2019 01:30:03 GMT

My 1099-DIV from LPL Financial shows line 1a with the the ordinary dividends. However, a comment on line 1a says that it includes the amounts on line 1b (Qualified Dividends) and line 5 (Section 199A Dividends). Turbo used line 1a as the Ordinary Dividends and then line 1b as the Qualified Dividends. Turbo should have reported the Ordinary Dividends as line 1a - line 1b. What can I do to fix this? I know it's weird that LPL reports line 1a with all dividends instead of just Ordinary Dividends.

Re: Ordinary Dividends Report

NCperson — Thu, 28 Feb 2019 02:02:23 GMT

nope that is not how it works. Turbo tax is correct

look at the report called 'qualified dividends and capital gains tax'. if you look through the math closely, you'll see that the dividends and capital gains are subtracted on lines 2 and 3 so that the rest of your income is calculated at the ordinary rate. Then Line 20 comes back and taxes the dividends and capital gains at the 15% rate.

My advise: "trust TT" - it is what everyone is paying for.