K-1 Box 6b should not be greater than the total dividend amount.

[tbone2024]

Hi there,

I received a Schedule K-1 (Form 1065) which has amounts listed in box 6a (Ordinary Dividends) and 6b (Qualified Dividends).   The amount in 6a is larger than the amount in 6b on the form I received.  I entered this into Turbo Tax online and received the following error when reviewing: sch k-1 Wks-Partnerships (Partnership Name): Box 6b should not be greater than the total dividend amount.

I don't see a total dividend field on the form.  I'm assuming this is referring to box 6a.  Has anyone experienced this?  Do I need a corrected K1?  Is this a bug in turbo tax?  Something else?  

Thanks!

[ThomasM125]

The qualified dividends should not be greater that the ordinary dividends, as the ordinary dividends would include the qualified dividends. For instance, you may have $1,000 in ordinary dividends, of which up to $1,000 could be qualified dividends, but not more.

It appears the K-1 schedule is incorrect. You may not be able to get a corrected one, in which case you should ascertain what the total dividends are and enter that amount in box 6(a) and not more than that in box 6b).  It may be itemized in the worksheets attached to your schedule K-1.

From the instructions to Form 1099-DIV which explains how dividend reporting works, just substitute box 6(a) and 6(b) on your K-1 schedule for Box 1a and 1b here: 

[Edited 3/5/24 at 3:44 PM PST] @tbone2024 

[tbone2024]

Thank you for the reply @ThomasM125.  I don't have 1099-DIV.  This is part of a partnership and is being reported on a Schedule K-1 (Form 1065).  Does that make a difference here?  If not, it seems like I should report the sum of 6a and 6b as ordinary dividends in turbo tax. 

[ThomasM125]

Yes, the same principal applies, box 6(a) on schedule K-1 is the total of the dividends, so box 6(b) can't be more that box 6(a). You wouldn't add them together, as the qualified dividends are included in the ordinary dividends. You just need to make sure you don't enter more in qualified dividends then you have in ordinary dividends. 

[tbone2024]

In the end, I received an updated form.  As @ThomasM125 originally said, the K-1 was wrong.