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New Member
posted Feb 22, 2023 2:58:40 PM

Nominal amount on 1099-DIV for minor but asked to upgrade to TurboTax Live Deluxe (Define "Situations Covered: Limited dividend income reported")

I attempted to use the "Free" version of TurboTax to file a return for my 17-year-old son.  But the TurboTax website would not allow that and asked me to upgrade with this guidance:

 

Why do I need to upgrade?
You have Capital Gains on a 1099-DIV.  TurboTax Live Basic is only for simple returns.  It does not cover this situation. Upgrade to TurboTax Live Deluxe?
 
However, the website also says:
 
Situations covered (assuming no added tax complexity):
  • Limited interest and dividend income reported on a 1099-INT or 1099-DIV 

We were able to use the "Free" version when I filed his taxes last year when he was 16 and had $187 of ordinary dividends on his 1099-DIV.  He has $318 of ordinary dividends this year.  Does "Limited" in the statement above mean "more than $300"?

 

Thanks...

0 3 393
3 Replies
Level 15
Feb 22, 2023 3:04:57 PM

The first thing says he has Capital Gains on the 1099DIV.  That is not dividends but is in addition to any dividends.  

New Member
Feb 22, 2023 3:20:48 PM

We were able to use the "Free" version last year when my son's 1099-DIV showed:

Total Ordinary Dividends ($187)

Qualified Dividends ($135)

Total Capital Gains Distributions ($353)

 

His 1099-DIV this year has very similar amounts: 

Total Ordinary Dividends ($318)

Qualified Dividends ($302)

Total Capital Gains Distributions ($171)

 

These amounts are nominal so I am trying to determine why we are not able to use the "Free" version this year.  The full guidance on the website says:

 

What qualifies as a simple tax return?

If you have a simple tax return, you can file with TurboTax Free Edition, TurboTax Live Basic, or TurboTax Live Full Service Basic. A simple tax return is one that's filed using IRS Form 1040 only, without having to attach any forms or schedules. Only certain taxpayers are eligible.
Situations covered (assuming no added tax complexity):
  • Limited interest and dividend income reported on a 1099-INT or 1099-DIV 

New Member
Apr 16, 2023 9:02:30 PM

I don't know anything about taxes. but my  13 year old son has about 6 dollars in capital gains on his 1099-div for UTMA and it triggers the 59 dollar charge.. That really sucks!