I’m using TurboTax Desktop 2024 and entering a 1099-DIV from Charles Schwab with:
TurboTax is correctly including the Box 2a amount on Form 1040, line 7, but it is also including it on Schedule D, line 13, which causes it to be double-counted in the Qualified Dividends and Capital Gain Tax Worksheet.
This results in overstating my long-term capital gains and increases Form 1040, line 16 by $1,185 more than it should.
I did not make any overrides or forced edits. I followed the interview and forms mode properly, and TurboTax confirms that the return is eligible for e-filing without any red flags.
My goal is to file an accurate return through e-file, but TurboTax seems to lack the option to prevent Box 2a from flowing to Schedule D when that amount is already reported on 1040 line 7.
Question:
How can I properly enter a 1099-DIV Box 2a amount so that it appears on 1040 line 7 without also being added to Schedule D?
If you are not filing Sch D (1040) because your only capital gains are reported on Form 1099-Div in box 2a then make sure that the box on Form 1040 line 7 is checked. Then, on the Qualified Dividends and Capital Gain Tax Worksheet, the No box on line 3 should be checked and only include the amount once.
if you have other capital gains/losses 2a of the 1099-DIV properly flows to schedule D line 13. Line 2a is not included in either line 1a or 1b of the 1099. You have about $5400 of dividend income. if you don't have other capital gains the box on line 7 should be checked.
assuming no other qualified dividends or long-term capital gains, the QD and CG worksheet should show 819 on line 2 and 2172 on line 3
Thank you both for your responses — I wanted to clarify a few things based on my specific situation and also invite others to weigh in if they’ve experienced something similar.
I am filing Schedule D, because I have additional capital gains from E*TRADE reported on a 1099-B (long-term Box D sales totaling $14,836). I also have a 1099-DIV from Charles Schwab that includes a capital gain distribution of $2,172.39 in Box 2a.
Per IRS instructions (including Pub. 550), when you’re filing Schedule D for other reasons, you can still report Box 2a directly on Form 1040, line 7, and exclude it from Schedule D, as long as it wasn’t reported on a 1099-B (which it wasn’t — it was just a distribution).
The issue I'm running into is that TurboTax includes Box 2a in both:
I’ve confirmed that I haven’t overridden any forms, and the return is fully eligible for e-filing. I even tried deleting and re-entering the 1099-DIV, and manually entering the amount in the Capital Gain Distributions Worksheet instead — but TurboTax still routes the amount to Schedule D, even when it shouldn’t.
Also, I understand that the checkbox on Form 1040, line 7 is only used when Schedule D is not required — and since I’m filing Schedule D, that box is rightly grayed out.
I’m still looking for a clean way to get TurboTax to exclude this from Schedule D without forcing or overriding anything — and welcome any additional insight from other community members or Intuit staff who may be able to help shed light on how to handle this scenario correctly within the software.
Thanks again to everyone helping out!
I'm having the exact same problem. Double counted on Sch D, Line 13. How do I correct it?
While it is true that the IRS allows you to enter amounts not reported on 1099-B directly on form 1040 line 7 the TurboTax program does not support this. You'll need to enter everything directly through the schedule D.