Where to enter 1099-DIV other boxes in Turbotax Business (Desktop)

[gblanc]

I found that I can enter 1099-DIV boxes 1 & 2 in the income section of Turbotax Business (Desktop) but where can I enter Box 12 Exempt-Interest Dividends and Box 14 Specified Private Activity Bond Interest Dividends (which is a subset of box 12)?  Please don't provide an answer for Turbotax on-line or Turbotax Personal, as many know Turbotax Business is very unique, is only supported as a Intel Windows desktop product with no equivalent on-line or for Mac or for Windows ARM.

[DoninGA]

Click on the box labeled My form has info in other boxes, located directly below box 2a

[gblanc]

Thank you for your quick reply, there is no box 2a or a check mark for "My form has info in other boxes".  I am in the Income Tab > Investment Income section > Interest and dividend income > Dividend Income page.  Is there somewhere else I should be?

[DoninGA]

@gblanc I got my information from the personal desktop Premier edition for tax year 2025.  Since you are using the TurboTax Business Edition I do not have access to that edition so cannot provide any assistance.

@Hal_Al @Opus 17 @VolvoGirl Do any of you have access to the Business Edition or know a forum user that would have this information?

[gblanc]

Interestingly if this was a 1041 Estates and Trust return there is a 1099-DIV template to fill out under Income Tab > Dividend Income on 1099-DIV, but for 1065 partnership or 1120S S corp the template does not exist.

So the issue is specific to not only Turbotax business but more specific to 1065 and 1120S returns.

Anyone?

[gblanc]

It look like this is technical debt for the 1065 partnership or 1120S S corp within TurboTax Business (Windows Desktop).  I loaded 2024 and the same technical debt exists (don't want to call it a bug in that it seems to be a conscious but annoying decision to only support the full 1099-DIV form for a 1041 Trust or Estate within TurboTax Business).  I found if you know what you are doing you can make entries directly in forms mode.

[DavidD66]

For S-Corporation - Form 1120-S  Exempt-Interest Dividends (Box 12 of Form 1099-DIV) are reported as Tax-exempt interest income) on line 16a of Schedule K.  They would be entered in the Interest and Dividend Income section under Investment Income.  They are entered on the screen with the heading Tax-Exempt Interest.   This can also be entered directly on Schedule K in Forms mode. 

Private Activity Bond Interest (Box 13 of Form 1099-DIV)  is reported as an AMT adjustment on line 17d of Schedule K.  This has to be entered in Forms mode. 

A Partnership return - Form 1065 would have similar entries with line numbers.
 

[bassfisherman]

 Can someone please clarify this answer as it is completely unclear.  

Say you have a 1099-DIV with Box 1 which has $5,000 in Ordinary Dividends.  You know that $2,000 of those dividends are from US government obligations and you want that to flow through to your personal taxes.  IT seems you enter this directly on your K-1 but where?  Do you adjust the down the $5,000 to $3,000 and separate out the $2,000 and enter them else wehre.

Second Wht if you have information in Box12 of your 1099DIV.  WHich is tax exempt interest.  There is no where to enter that information so if flows through. Especially if Box 13 is also populated.  

Why does turbotax business not handle this... It is really frustrating.

[RobertB4444]

Very little actually gets entered directly on a K-1 and certainly not dividends that pass through the company and end up on the K-1.  They have to be entered as dividends as they are reported to you on the 1099-DIV that the business received.  

If the dividends are entered into box 1 and they are non-taxable dividends then they have been entered into the 1099 incorrectly and you should request a corrected 1099-DIV from the financial institution that issued it to you.  

Tax exempt items do not pass through to shareholders except as part of their basis in the corporation because they are tax exempt.

[GO7]

I think TurboTax Business 2025 is defective. I cannot figure out how to input 1099 DIV capital gains. It is a terrible program, nothing like personal program. Had hoped it had import. Nope. Horrible UI.

[gblanc]

Thanks for your quick reply but it is completely wrong.  Like most folks responding to questions about the orphaned TurboTax Business (Windows desktop only) you gave an answer appropriate for TurboTax Personal.  TurboTax Business is three poorly supported versions in one for pass through entities Sub S corporations, Estates and Trusts and Partnerships.  Each one handles things like 1099-DIV differently like they were created by different companies and then band-aided together into on product.

You can't import anything into TurboTax Business, you must manually figure out where to enter the data from a 1099-DIV unless it it for an Estate or Trust in which case there is a 1099-DIV entry form to fill out but not for Sub-S corps or Partnerships.

[CatinaT1]

You are correct @gblanc. I missed that the question referred to the Business software. For TurboTax Business you do have to manual enter a 1099-DIV.

In the Business version, dividends are entered as business income.

If you are using the standard step-by-step interview:

1. Open your business return and click the Federal Taxes tab at the top.
2. Select Income from the sub-menu.
3. Look for the category labeled Investment Income, Click Start/Update next to Capital Gains and Losses
4. The third screen in this section is for Capital Gain Distributions.
5. You will enter the amount from your 1099-DIV box 2a here.
6. If you click on the Explain This link, the very last sentence says to enter it here. 

If you prefer to enter the data directly into the tax forms and are using the Desktop version:

1. Click the Forms icon in the top right corner.
2. On the left-hand list of forms, look for the Schedule D.
3. Enter your amount on line 14..
4. Click Step-by-Step (top right) to return to the interview mode.

@GO7

[bassfisherman]

Your answer helped but is not completely accurate for TurboTax Business.  As I said I have information contained in Box 12 and Box 13.  I already know how to handle box 2 on the 1099DIV.  What I Specifically want to know is where does this information go in TurboTax Business so that it flows through to the K1 and the partners will then be able put it on their personal returns.  I don't want to include it with Box 1 details as it is not correct and is not taxable.

12 Exempt Interest Dividends ..............................................................................2,600.32

13 Specified Private Activity Bond Interest Dividends.............................................391.77

Do I need to go directly into the K1 worksheets and override them?

Thank you.

[gblanc]

DavidD66 gave the correct answer above when I asked the question, here was his answer:

For S-Corporation - Form 1120-S  Exempt-Interest Dividends (Box 12 of Form 1099-DIV) are reported as Tax-exempt interest income) on line 16a of Schedule K.  They would be entered in the Interest and Dividend Income section under Investment Income.  They are entered on the screen with the heading Tax-Exempt Interest.   This can also be entered directly on Schedule K in Forms mode. 

Private Activity Bond Interest (Box 13 of Form 1099-DIV)  is reported as an AMT adjustment on line 17d of Schedule K.  This has to be entered in Forms mode. 

A Partnership return - Form 1065 would have similar entries with line numbers.
 

[bassfisherman]

Thank you so much.  This is great.