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Level 1
posted Mar 8, 2023 8:42:21 AM

K-1 and 1099D have the same dividend. how do I adjust so I don't pay tax on the same income twice?

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1 Best answer
Expert Alumni
Mar 8, 2023 2:11:10 PM

Without going to great lengths to have corrected forms sent to you, there is an easier way to both list the dividends received in total and at the same time have one be excluded from your total income calculation.  You can list the dividends received from the broker as "Nominee" dividends and the steps below should assist you in that regard:

  1. In TurboTax, go to "Wages & Income"
  2. Scroll to "Investments and Savings"
  3. Click "Edit/Add."  for the particular dividends to which this applies
  4. The next screen will ask if any uncommon situations apply, checkmark "I need to adjust" and click "I need to adjust these dividends".
  5. Place the amount of the dividends that appears on both forms in the adjustment amount line and click "you received all or part for someone else".
  6. Click continue and the portion of the dividends that applies to your doubled amount should be deducted from your income.

 

 

 

I suggest using the broker 1099-DIV rather than the K-1 amount as it is easier to adjust and easier to have it apply to a specific document rather than one that includes other information.  

 

@JimB 

 

5 Replies
Expert Alumni
Mar 8, 2023 9:05:11 AM

Your LLC or S Corp issued you both the K-1 and the 1099-DIV?

 

Are you a single member LLC that invested in another company so the 1099-DIV was issued to you?

 

It may be a case where you will need a corrected 1099-DIV (the LLC would need to retract it) if the income went to a partnership LLC.  If you are a single member LLC then you shouldn't have a K-1.

Level 1
Mar 8, 2023 1:11:12 PM

The 1099D was issued by my broker and the K-1 was issued by the LLC

Expert Alumni
Mar 8, 2023 2:11:10 PM

Without going to great lengths to have corrected forms sent to you, there is an easier way to both list the dividends received in total and at the same time have one be excluded from your total income calculation.  You can list the dividends received from the broker as "Nominee" dividends and the steps below should assist you in that regard:

  1. In TurboTax, go to "Wages & Income"
  2. Scroll to "Investments and Savings"
  3. Click "Edit/Add."  for the particular dividends to which this applies
  4. The next screen will ask if any uncommon situations apply, checkmark "I need to adjust" and click "I need to adjust these dividends".
  5. Place the amount of the dividends that appears on both forms in the adjustment amount line and click "you received all or part for someone else".
  6. Click continue and the portion of the dividends that applies to your doubled amount should be deducted from your income.

 

 

 

I suggest using the broker 1099-DIV rather than the K-1 amount as it is easier to adjust and easier to have it apply to a specific document rather than one that includes other information.  

 

@JimB 

 

Level 1
Mar 8, 2023 3:16:10 PM

Thank you, I overlooked the adjustment feature.

 

I did call the broker and getting them to reissue the 1099 would be difficult

Level 1
Mar 11, 2023 2:04:25 PM

Problem Solved!!

The broker issues a Corrected 1099 

 

Thanks for all the help...