I imported a 1099-DIV from my brokerage company to TurboTax 2024 and the Box 5 on the 1099-DIV is not emptied. When I ran the Smart Check on TT, it flags "adjusted 199a dividends" for box 5 should be filled in. I don't see this entry on my 1099-DIV from my brokerage company. How do I determine that?
199A dividends are a subset of ordinary dividends that are reported in box 1. These are dividends that qualify for the qualified business income (or QBI) deduction. 199A dividends usually comes from Real Estate Investment Trusts (REITs) or certain other investments. If you don't have these types of investments, you might not have any 199A dividends to report.
Look for any supplemental information the brokerage provided with the 1099-DIV. Sometimes the brokerage includes these details in those statements. Additionally, you can contact your broker directly so that they can tell you if any of your dividends qualify as 199A dividends.
I double checked my 1099-div and I don't see any information related to the 199a dividends entry. I looked into this further and it seems the adjustment has to do with our income and the holding period for the mutual fund that generated the 199a dividends.