1099B return is less w/ less in Box 1B,if box 1a=1b(1a=$50, 1b=$50) return is more than if box 1a>1b(1a=$50, 1b=$40) I expect return to + w/ lessQualified Dividends why?

I consolidated my question to fit the character limit for that field.

To add more detail, ultimately, what I am seeing is that with less in qualified dividends my tax return decreases compared to having the Qualified Dividends match the Total Ordinary Dividends. This calculation seems incorrect... I expect taxes to be computed based on the Qualified Dividend amount and increase my return if it is less than the total Ordinary.

Can I get an explanation for why this is happening? I'm probably missing something but could be an issue with the software if not.

517

1 Best answer

Level 13

Jun 6, 2019 6:36:11 AM

You''re clearly dealing with a 1099-DIV, not a 1099-B.

Qualified dividends are taxed at favorable LTCG rates while non-qualified dividends are taxed at (typically higher) ordinary tax rates.

So for a given amount of Box 1a "Total ordinary dividends" as you decrease the Box 1b "Qualified dividends" more of your total dividends are taxed at "ordinary" rates and as you increase the Box 1b "Qualified dividends" more or your total dividends are taxed at LTGC rates.

Every thing else being equal more Qualified dividends increases your refund and less Qualified dividends decreases your refund.

Tom Young

Level 13

Jun 6, 2019 6:36:11 AM

You''re clearly dealing with a 1099-DIV, not a 1099-B.

Qualified dividends are taxed at favorable LTCG rates while non-qualified dividends are taxed at (typically higher) ordinary tax rates.

Every thing else being equal more Qualified dividends increases your refund and less Qualified dividends decreases your refund.

Tom Young

New Member

Jun 6, 2019 6:36:13 AM

Thank you for the quick response! That makes sense now that I understand the meaning of the terms.

I imported it all together with my brokerage account so was thinking 1099B when I was writing this but you are right it is clearly DIV.

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1099B return is less w/ less in Box 1B,if box 1a=1b(1a=$50, 1b=$50) return is more than if box 1a>1b(1a=$50, 1b=$40) I expect return to + w/ lessQualified Dividends why?