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velvia
New Member

TurboTax online seems to be counting my qualified dividends as ordinary income. Is there any way I can validate or see Sched D or a breakdown?

(All I have entered so far is my W-2 and 1099-DIV/B etc.  There seems to be no way my unqualified dividents + ordinary income can add up to what TurboTax claims)
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11 Replies

TurboTax online seems to be counting my qualified dividends as ordinary income. Is there any way I can validate or see Sched D or a breakdown?

Yeah...ALL the dividend income is included in your AGI and Taxable income lines on the 1040, but the amounts you entered for your Qualified dividends are considerred separately and used on special calculation worksheets to calculate the actual tax due.

It's easy to see the special worksheet on the Desktop software by switching to Forms Mode......but for Online software users, you would have to go to the Print Center (left side of screen) and save a PDF copy ….but save with all forms and backup worksheets,  and look for the worksheet in that PDF.

Usually it is in the "Qualified Dividends and Capital Gain Tax Worksheet" or "Schedule D Tax Worksheet"
____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*
velvia
New Member

TurboTax online seems to be counting my qualified dividends as ordinary income. Is there any way I can validate or see Sched D or a breakdown?

I noticed in past years there is no "Qualified DIvidends and Cap Gain Tax Worksheet".  Do  you know where in Schedule D it would be?

I cannot see the forms until I pay.  However, I am hesitant to pay until I can see what is going on.  See the problem?  Is there no way for me to understand what TurboTax is doing under the hood before I fork over the $$ to see the forms?

Basically what I see is that the tax owed goes up by much more than the cap gains rate if all my dividends were really counted as qualified.  Could there be another explanation, such as would the dividends cause my income to be taxed in a higher bracket?

Many thanks.

TurboTax online seems to be counting my qualified dividends as ordinary income. Is there any way I can validate or see Sched D or a breakdown?

Sorry you have to pay to print or switch to the Desktop program, which does require you to buy it first to install on your computer.  But then you can see all the forms and worksheets and other features and advantages over the online version.  You can even use a lower version.  And a state program download is included.  <a rel="nofollow" target="_blank" href="Https://turbotax.intuit.com/personal-taxes/cd-download/">Https://turbotax.intuit.com/personal-taxes/...>

if you have capital gains or qualified dividends the tax on line 44 is not taken from the tax table but is calculated separately from schedule D.  The tax will be calculated on the Qualified Dividends and Capital Gain Tax Worksheet.  It does not get filed with your return.  In the online version you need to save your return as a pdf file and include all worksheets to see it.  
Anita01
New Member

TurboTax online seems to be counting my qualified dividends as ordinary income. Is there any way I can validate or see Sched D or a breakdown?

It's not a part of Schedule D, it's a separate worksheet.  If you look at the 1040 in your return, you'll see Qualified Dividends on 9B and Ordinary Dividends on 9a.  Ordinary dividends are added into your AGI, and, like all changes in AGI, many changes can occur in your return as a result.  

Your income can be taxed at a higher rate, you can lose some or all of certain credits or deductions, and anything related to AGI limits can change, such as eligibility for IRA contribution amounts, medical deductions, etc.  

The only way to see what changes is to look at or print your return or 1040 before and after the dividend entry.  To see your 1040, click on Tax Tools on the left, then Tools, Choose View my Tax Summary, then Preview my 1040.  You'll see the 1040 and all 6 of the attached Schedules.

TurboTax online seems to be counting my qualified dividends as ordinary income. Is there any way I can validate or see Sched D or a breakdown?

@TurboTaxAnita   .....lines 3a and 3b for a 2018 1040 now. And they switched what was "a" and what was "b" too...... (long day?  😉

(ahhhhhh or maybe you were only referring to their prior years 1040, lines 9b and 9a?  Sometimes tough to see which ones they want to look at point-in-time...clarity becomes impossible at times)
____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*
velvia
New Member

TurboTax online seems to be counting my qualified dividends as ordinary income. Is there any way I can validate or see Sched D or a breakdown?

@TurboTaxAnita  what if I print it out and find out that the qualified dividends worksheet is blank or has no value for qualified dividends but form 1040 line 9b has qualified dividends (as does my 1099-DIV)... is that possible?  Is there a reason why TurboTax would not fill it out?
Anita01
New Member

TurboTax online seems to be counting my qualified dividends as ordinary income. Is there any way I can validate or see Sched D or a breakdown?

I'm confusing myself, Earlier I was referring to 1040s before 2018, so I'll continue with that. For 2018, the lines would indeed be 3a and 3b.
Yes, there are reasons why the Qualified Dividends and capital Gains worksheet might be missing.  You don't mention the Ordinary dividends on 9a, but they have to be present too., Also. there are 6 or different worksheets used to calculate taxes, and yours may have been done on another worksheet, such as the Capital Gains Worksheet.  Without  being able to see your full return, and worksheets, it's impossible to make a guess.  I can only tell you what should have have happened in the program if you had filled out all the screens correctly.
Anita01
New Member

TurboTax online seems to be counting my qualified dividends as ordinary income. Is there any way I can validate or see Sched D or a breakdown?

If you look at the 1040 in 2018 and then look at it again after entering this 1099-DIV and the tax changes as it should, you should trust the calculation.
Anita01
New Member

TurboTax online seems to be counting my qualified dividends as ordinary income. Is there any way I can validate or see Sched D or a breakdown?

If you are talking about printing the 2018 forms, I would tell you to go back and delete the 1099-DIV that's causing the problem and enter it again.  We've had no errors reported on this and it's getting late in the season.
Joerodeo
Returning Member

TurboTax online seems to be counting my qualified dividends as ordinary income. Is there any way I can validate or see Sched D or a breakdown?

My 1040 (and other forms) insist on having qualified dividends be equal to or less than ordinary dividends....then in the QDCG form, the program computes my tax for the qualified dividends (fine) and the goes on to compute the tax on all income, including the qualified dividends now being treadted as ordinary dividends.

A zero on the 1040, QDCG or other forms for ordinary dividends triggers and error.

I am running out of ideas.

 

Joe Rodero

JulieS
Employee Tax Expert

TurboTax online seems to be counting my qualified dividends as ordinary income. Is there any way I can validate or see Sched D or a breakdown?

A qualified dividend is an ordinary dividend that can be reported to the IRS as a capital gain rather than as ordinary income. 

 

In other words, all dividends are ordinary dividends, but not all dividends are qualified dividends. Therefore your qualified dividends are never more than your ordinary dividends.

 

You will also never see a 1099-DIV where the qualified dividends in box 1b are more than the ordinary dividends in box 1a. 

 

If you think your are being taxed twice, you are not understanding the Qualified Dividends and Long Term Gains (QDLTG) worksheet. That worksheet separates your qualified dividends and net long term gains from the rest of your income and calculates a special income tax rate for them that is as low as 0%. 

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