Qualified Dividends part of Total Income ?

[BobbyC777]

I used TT for 1st time in 2023 and was impressed. I am trying to figure my estimated payments for TY2024 and was using the free basic online TT calculator. When I enter my data (Interest, Dividends, SS, etc.) it gives me an  Income total. That total is less that the sum of my inputs. It differs in part because only 85% of SS in included in Income. BUT it also does not include the amount I entered for Qualified Dividends.  I know that I am paying 15% on my Qual. Div as I saw it added in on the Sched D Worksheet for my 2023 taxes. Why do the Qualified Dividends not get reflected as part of Total Income in the TT calculator or  (1040 Line 9) or AGI (1040 Line 11)?

I know I'm paying taxes on it - just trying to understand things better.  Thanks!

[Mike9241 · Accepted solution]

did you enter total dividend income because that includes qualified dividends? Not sure what version you're using 

is this what you used (p.s. this is for 2023  as are most tax calculators you'll find on the interent)

https://turbotax.intuit.com/tax-tools/calculators/taxcaster 

you'll see boxes for total dividends that must include qualified dividends and then a box for the qualified dividend portion.

the simplest way to avoid underpayment of tax penalties for 2024 is to pay 100%, 25% per tax period, of your 2023 tax. that jumps to 110% (27.5% per period, if your adjusted gross income for 2023 is over $150,000 

[BobbyC777]

@Mike9241   Great information!  Yes, I am using the TT Taxcaster tool.  My mistake was thinking that Qualified Dividends were separate from Ordinary Dividends. I now realize that they are included within Ordinary Dividends. So I was effectively double counting the Qualified Dividends. And that is why MY total income was more than the sum of my income inputs! (Plus the fact that only 85% of SS goes to income.)

I then found this:

Ordinary dividends are the total of all the dividends reported on a 1099-DIV form. Qualified dividends are all or a portion of the total ordinary dividends.

 Thank you very much!

BobC