1099 Dividend Form

Forum|Forum|5 years ago
February 21, 2021
1 reply
5 views

I have form 1099- Div with an amount in box 2a. this is treated as ordinary income. How do I enter this in order to claim this as a long term capital gain ? Do I need a form 1099-B ?

AnnetteB6

Level 15

Enter the information reported in box 2a of Form 1099-DIV exactly as it was reported to you.

The amount reported in box 2a is transferred automatically to Schedule D line 13 as a long-term capital gain distribution. You do not need to do anything other than enter the information from the Form 1099-DIV.

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WBT66Author

Level 2

TurboTax is NOT handling the entry on line 2a as you indicated. I only had an entry in line 2a and nothing in 2b, c,d.

the resulting 1040 shows this amount as ordinary income on line 7 with the box checked indicating Schedule D not required. Please advise.

SteamTrain

Level 15

@WBT66

Yes, Line 7 does not signify whether it was long term or short term gain.

Yes...Line 7 does add in short term gains, with long term gains, and with box 2a of any 1099-DIV....BUT...how it is being taxed is divided up and handled properly in the background. Usually on the "Qualified Dividends and Capital Gain Tax Worksheet"....but occasionally on one of a couple other possible tax computation worksheets.

____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*