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New Member
posted Jun 6, 2019 1:59:53 AM

Qualified dividends ordinary

Can I treat qualified dividends as ordinary income if it's more advantageous for me to do so?  In my case, I need to ordinary income to offset investment interest, and it's better for me fully offset my dividends with investment interest expense than to pay capital gains rates on qualified dividends.

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7 Replies
Intuit Alumni
Jun 6, 2019 1:59:54 AM

No, you have to treat dividends as they are reported on your Form 1099-DIV.  If your dividends are qualified dividends then you have to report then as qualified dividends on your tax return.

Nonqualified dividends are taxed at ordinary income rates, while qualified dividends receive more favorable tax treatment by being taxed at capital gains rates.

[Edited 04/05/2019 | 3:59 pm PDT]

Intuit Alumni
Jun 6, 2019 1:59:56 AM

I have added information on the tax treatment for non-qualified vs qualified dividends

Level 2
Mar 5, 2020 5:49:56 AM

When I imported 1099 from broker, I only see Ordinary dividends listed.  How are Qualified dividends reported in TurboTax?

Level 2
Mar 5, 2020 5:52:16 AM

Also, what do I do with Section 199A Dividends and Foreign Tax Paid?

Expert Alumni
Mar 6, 2020 2:18:42 PM

When Qualified Dividends (Box 1b) are not on the Form 1099-DIV it means that none of the dividends on the form can be classified a Qualified. Qualified dividends are only used in the calculation of your final taxes.

 

When you enter Section 199A (Box 5) the software will enter the information to calculate the Qualified Business Income deduction on Form 8995 which will go on Form 1040, Line 10. 

 

When you enter Foreign Taxes Paid (Box 7), depending the amount is added to your return as tax credit. It will be entered on Line 1 of Schedule 3 and then to Form 1040, Line 13b.

 

Level 15
Mar 6, 2020 2:42:34 PM

@Leonard "No, you have to treat dividends as they are reported on your Form 1099-DIV.  If your dividends are qualified dividends then you have to report then as qualified dividends on your tax return."

 

This is not correct. the taxpayer determines the qualified status of dividends and adjusts accordingly.

New Member
Mar 8, 2020 8:06:48 PM

Non-qualified dividends:  please tell me EXACTLY where to enter those on the TT dividend worksheet.  I can't find it.