Dividend tax too high

[Jshifus]

I entered my total ordinary dividends, and the federal tax is going up more than it should

[baldietax]

Aside from the tax bracket itself, the tax liability can additionally be affected by different things as your income goes up, perhaps other exemptions or deductions phase out, or could include penalties if you are looking at the the amount due to IRS in the tracker on TT desktop, and haven't completed things like estimated taxes etc.  No one here can see your return - you need to look at the 1040 line by line to see how the ordinary dividends are changing the tax liability.

[LindaS5247]

Ordinary dividends are taxed using the ordinary income tax brackets for tax year 2024. Ordinary dividends are reflected in Box 1a of your Form 1099-DIV.

There are many things that affect your "Federal Refund.  If you added a Form 1099-DIV that just reported "ordinary dividends" and you saw a jump in your tax due, you may have moved to a different tax bracket or have been phased out of a deduction.  

Also, you should check to make sure your Form 1099-DIV was properly entered. Go back to "Wages & Income" and select "Dividends on 1099-DIV" to make sure your numbers are correct.

Your Form 1099-DIV should be entered exactly how it is shown in the TurboTax program. If you have an incorrect entry, you can go back and edit it by clicking on "Edit" next to your Form 1099-DIV.

If you received a Form 1099-DIV, you should enter it under Wages & Income in TurboTax, as follows:
 

You can enter your Form(s) 1099-DIV information using the steps below:

1. Open your return
2. In the search Bar enter Form 1099-DIV
3. Select "Jump to 1099-DIV"
4. It will ask, "Did you have investment income in 2024?" Select "Yes"
5. Select "Continue"
6. Select "Skip Import"
7. You will Select your investment type which is "Dividend"
8. You will "Continue"
9. Then you will see the screen "Let's get the info from your 1099-DIV"
10. You will type in the information from your Form 1099-DIV on that page

Click here for "Is There a Dividend Tax? Your Guide to Taxes on Dividends"

Click here for "Topic no. 404, Dividends"

Click here for "Where Do I Enter Form 1099-DIV in TurboTax Online?"

Click here for "How Do I View and Delete Forms in TurboTax Online"

Click here for "How to Delete Forms in TurboTax Desktop.

[M-MTax]

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@Jshifus wrote:

I entered my total ordinary dividends, and the federal tax is going up more than it should

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Silly question, perhaps, but did you also enter your Qualified dividends (Box 1b)?

Qualified dividends are essentially taxed at the long-term capital gains tax rates (0%,15%, 20% (max)).

[VolvoGirl]

When you enter one taxable transaction, you can't just watch the monitor. You increased your overall adjusted gross income and with that come many other changes in your return, not just the incremental tax on the one transaction. More income can make more of any Social Security taxable and can increase or decease any credits you qualified for.

By increasing your income you might have lost some credits and deductions like the EIC.  I once added $6 in interest and the tax went up $12! It pushed me into the next tax bracket. I was right at the line.