How is tax calculated for 1099-DIV for 2020?

[tssndo]

Hello,

I mistyped Box 1b for one of my 1099-DIVs. It was supposed to have been $100.00 but I accidentally entered in $10,000. When I updated the amount, my tax owned went from $10,300 to $10,900. Does that seem correct? It's my understanding that the tax calculated for a 1099-DIV is Box 1a minus Box 1b. My Box 1a is $1,300 and Box 2a of Total Capital Gain Distributions is $800. Would the tax owned for this one 1099-DIV be as simple as 1,300 minus 100 and then 15% of that amount? Then, what is the actual tax rate for the Total Capital Gain Distributions?

Thank you.

[rjs]

The change does basically seem feasible. Reducing box 1b would increase your tax. But I don't know how TurboTax would have calculated the tax before the correction, because box 1b should not have been more than box 1a. If you had left the incorrect entry you would have gotten an error message in the federal review.

The amount of box 1a minus box 1b is taxed at the rates for ordinary income. The amounts in boxes 1b and 2a are taxed at the lower rates for qualified dividends and long-term capital gains. Neither of them is a fixed percentage. The percentage depends on your other income and your filing status. And if either type of income happens to cross a bracket boundary it will not all be taxed at the same percentage.