How do you report capital gains on Turbofax free? I listed it under 1099-div, but it does not compute as taxed income.

[ThomasM125]

If you reported capital gain distributions from line 2(a) on your form 1099-DIV in TurboTax, it would flow to line 7 on your form 1040. The amount may not be taxable, however, depending on your filing status and income.

You can view your form 1040 while working in the online version of TurboTax by following these steps:

While working on your return in the Federal section of TurboTax:

   1.  Choose the Tax Tools icon on your left menu bar

   2.  Tools

   3.  View Tax Summary

   4.  Choose the Preview my 1040 on your left menu bar

There would be no other way to report capital gains on the free version of TurboTax.

[adjaeger]

I entered my capital gains from line 2a, but it did not transfer to line 7 as income. On other tax prep software it does. I assume it is taxable. Any way to find rules for income etc. that would affect the tax?

Thanks

[VolvoGirl]

If you are in the Free Edition you probably need to upgrade to Deluxe or even Premier to enter that.   Did it let you enter the 1099 Div?

[adjaeger]

Yes. Entering the 1099-DIV was easy, but it never transferred the capital gains from line 2a to line 7 on the tax form. Not sure if this is a Turbotax  glitch or not. I would not even have noticed this if I had not also use an alternate tax prep as a check. Made a difference of about $60 less in my refund. I think the 'free" Turbotax should at least note that users need to enter the capital gains on their own on line 7, since the free version definitely missed that transfer amount.

[ThomasM125]

If your income is under $40,400 ($80,800 married-joint) and your dividends are qualified, as opposed to being ordinary, then there would be no tax on them on your federal return. Most dividends are qualified, so the other tax prep software you used may not have taken this into account.

If your dividends were qualified, they would be listed in box 1(b) on your 1099-DIV statement.