Schwab Dividend - Paid/Adjusted in 2025 for 2024

[ma6878]

I received along with 1099-DIV from Schwab a Detail Information of Dividends and Distributions which has a column called "Paid/Adjusted in 2025 for 2024". There are negative values for some positions and positive values for some positions. How does this affect my tax filing if at all?

[baldietax]

I had this last year on some preferreds where they reflected it as the wrong type of dividend when paying it (non-qualified instead of qualified, or even interest income) which is really just how Schwab reflects the transaction type, and had to correct the classification between these categories for final tax reporting.  If this is a similar situation to what you are seeing, then it's just noise in the detail - all these adjustments should add up to zero across these categories and then check the final net amount in the 'Amount' column, this should correspond to the totals on your 1099-DIV.

[baldietax]

in fact I see it again for 2024.  I think they also have to do this also for certain ETFs like PFF where they don't know how much of the dividend is qualified until the year-end tax reporting from the ETF company so they'll book it as non-qualified as it pays thru the year and then adjust some of it to qualified.

[ma6878]

@baldietax Thanks for the info. I can confirm that the qualified and non-qualified dividend adjustments sum up to zero. So looks like I am good there.

However I do see a $7 amount in the "Paid/Adjusted in 2025 for 2024" column for Section 199A Dividends - which does not cancel out with any other line item in that column. Do you know what do I do with that?

[baldietax · Accepted solution]

no probelm - I get same 199A for PFF corresponding on Box 5 on the 1099-DIV.  This is just classifying some dividends already included in Box 1a, usually due to REITs.  Just enter your 1099-DIV totals as provided which should reflect all these adjustments.

Box 5 is going to generate a QBI Deduction form 8995-A and do some magic and you may get a $1 deduction on Form 1040 Line 13.  Woohoo!  Don't ask me to explain it tho, I just let TTX do its thing.