How to Adjust a 1099-DIV with an Incorrectly Reported Amount in Box 1a

[Recster]

I have a 1099-DIV from my broker with an incorrectly reported amount in Box 1a.  All other amounts on this form are correct as the disputed dividend was unqualified. 

TurboTax will not let me enter a new 1099-DIV with a negative amount.  I could normally just report a negative amount in miscellaneous income with a line item explanation, but investment income in this case is subject to Net Investment Income Tax (NIIT) as well.  If this adjustment is reported via misc income, then the amount taxed by NIIT will be incorrect.  

Because of this situation, should I just enter my corrected box 1a amount even though it does not match the existing 1099-DIV?  Am I missing another way to properly report this via TurboTax?

[DavidD66]

You have to enter/report the 1099-DIV just as it is, unless you want to print and mail your return with an attachment explaining why you changed the 1099-DIV.  If you enter something different, it won't match the IRS'  records and they will treat it as as a typo,   If it affects your tax liability they will send you a letter. 

I'm unclear what the error on your 1099-DIV is.  You said the amount in Box 1a is incorrect and that the disputed dividend was "unqualified".  All dividends, whether qualified or not are included in Box 1a.  Box 1b is a subset of Box 1a.  If you have a dividend that is not qualified, then it should be included in Box 1a, but not 1b.  If you have a dividend that is qualified then it is included in both 1a and 1b.  

[Recster]

It was an unqualified dividend for a specific stock that was incorrectly totaled for the year.  You can very plainly see that the total reported via their supporting details per stock simply does not match what I received in my transaction history for that stock.  What I received in my transaction history is correct. 

There are no tax withholding or any other complications affecting the total.  All other stock dividends are reported correctly.  Ironically enough, my account manager at the brokerage agrees with me here.

Regardless, the qualified or unqualified nature of the dividend does not affect the underlying question.  In TurboTax, how do you correctly adjust for an incorrect number reported on a 1099-DIV, whether it's box 1a, 1b or any other box therein? 

[AmyC]

You state the account manager agrees with you. The brokerage should issue a corrected form. Best solution

If they won't, you need to:

1. document your conversation with the manager - follow up email with what was discussed. Ask for a signed letter or formal statement on brokerage letterhead acknowledging the error.
2. have your paper trail
3. enter the 1099-DIV exactly  as it is
4. continue to Tell us if any of these uncommon situations apply or special handling type wording
5. Select I need to adjust these dividends
6. Enter the amount not received
7. Check your 1040 Sch B
8. Wait for CP 2000 to show up and respond with the letter from the broker for best results.