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bngaccts-gmail-c
New Member

I have received taxable dividends and did not sell any stock in 2020.. Will the Basic package handle this?

 
3 Replies
HelenC12
Employee Tax Expert

I have received taxable dividends and did not sell any stock in 2020.. Will the Basic package handle this?

Yes, the TurboTax CD\Download Basic version handles taxable dividends reported on form 1099-DIV.

 

If you are using the TurboTax Online Free version, yes, Form 1099-Div should be supported. The TurboTax Free Edition, can be used by higher-income filers but only handles simple returns with no additional schedules.  Upgrades and add-ons, such as TurboTax PLUS and Audit Defense, are available.

 

 Simple tax situations covered in TurboTax Free Edition:

  • W-2 income
  • Unemployment income
  • Limited interest and dividend income reported on a 1099-INT or 1099-DIV
  • Claiming the standard deduction
  • Earned Income Tax Credit (EIC)
  • Child tax credits

For ordinary dividends that aren’t qualified, which is equal to box 1a minus 1b, you’ll pay tax at ordinary rates.

 

As of this writing, qualified dividends are taxed as long-term capital gains.  This means that if your highest income tax bracket is 15% or less, you receive these dividends tax-free. If your marginal rate of tax is higher than 15%, your qualified dividends are taxed at 15% or 20%, depending on your income.

  • To be qualified, your dividends must be paid by a U.S. corporation or, if a foreign corporation, a tax treaty must exist between the U.S. and the country of incorporation, or the shares must trade on a U.S. stock exchange.
  • Moreover, at a minimum, you must own the stock for more than 60 days during the 121-day period that begins 60 days before the ex-dividend date.

 

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bngaccts-gmail-c
New Member

I have received taxable dividends and did not sell any stock in 2020.. Will the Basic package handle this?

Thank you very much for your response.  I was confused when I asked that question.  I meant to say the Deluxe package -- not Basic.  So my question is will the Deluxe package allow me to enter ordinary taxable dividends or do I need to use the Premium version

Cass0317
Intuit Alumni

I have received taxable dividends and did not sell any stock in 2020.. Will the Basic package handle this?

Yes, it looks like you would need the Premier - Is TurboTax Premier Online right for me? You will find everything that is included in the Premier Program here.

You can start out filing under the Free Edition and if we detect that your tax situation requires expanded coverage, like deductions for owning a home or self-employment income, we'll prompt you to upgrade to a version that supports the forms you need so we can maximize your tax deductions and ensure you file an accurate return.

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