taxes on interest income from 1099 too high?

[v-harris1]

I imported a set of 1099 forms from an investment account and on about 4k earned (but not taken out of that account) it raised my taxes by over $900 - was that an error or did the auto download assume I took that investment out?

[DianeW777 · Accepted solution]

It depends. If you had earnings such as interest, regardless if you took the money out or not it is taxable income. Likewise, if you sold an investment the gain is taxable in 2024.  You can review your investment income, interest, dividends and stock sales, if applicable, using the steps in the information below.

To review your entries in TurboTax, follow these steps. 

1. Open or continue your return.
2. Navigate to the investment sales section:
   • TurboTax Online/Mobile: Go to investment sales. If using this application, make sure it is open
   • TurboTax Desktop: Search for investment sales or 1099int or 1099div and then select the Jump to link.
     • Or Personal Tab > Continue > I'll choose what I work on > Scroll to Investment Income > Select Stocks, Cryptocurrency, Mutual Funds, Bonds, Other
3. Answer Yes to the question Did you sell any of these investments in 2024? 
   • If you land on  the Investment sales summary or Your investments and savings screen, select Add More Sales or Add investments.
   • Click this link for more information. Where do I enter Investment Sales?