1099-DIV

Forum|Forum|4 years ago
April 12, 2022
1 reply
17 views

2021 Desktop TurboTax adds the Ordinary Dividends & Exempt Dividends for entry on Dividends line in step-by-step 1099-DIV. 2020 Desktop TurboTax enters only the Ordinary Dividends. Why are Exempt Dividends being included in 2021?

Best answer by jp4tt

Thanks for the reply.

Box 1b is checked for both tax years 2020 and 2021. So, I don't know why Exempt Dividends are added to Ordinary Dividends in 2021 but were not added in 2020. I haven't been able to find info in TurboTax (or the IRS) about whether Exempt Dividends should be included in "Dividends on 1099-DIV" under "Interest and Dividends" section in TurboTax Step-by-Step.

However, after looking at Schedule B (Form 1040) Interest and Dividends, line 5 shows only Ordinary Dividends and their total on line 6 which is what gets entered on line 3b of Form 1040. It appears that the Exempt Interest Dividends get reported on line 2a Tax-Exempt Interest on Form 1040.

So, even though TurboTax Step by Step shows Ordinary and Exempt Dividends as a total amount under the Interest and Dividends section, they get reported on separate lines on Form 1040.

JillS56

Level 10

When you are entering the dividends on the screen where you enter Box 1a, Box 1b, and Box 2a under Box 1b is a box that you check that will show you the remaining boxes that are on a 1099-DIV.

jp4ttAuthorAnswer

Level 2

Thanks for the reply.

So, even though TurboTax Step by Step shows Ordinary and Exempt Dividends as a total amount under the Interest and Dividends section, they get reported on separate lines on Form 1040.

DianeW777

Level 15

Yes, that is correct. They are dividends however the exempt interest dividends are reported differently and on a different section of the Form 1040 as you noted. This is the correct way to handle these different types of dividends. TurboTax has you covered.

**Say "Thanks" by clicking the thumb icon in a post. **Mark the post that answers your question by clicking on "Mark as Best Answer"