Why does the total of my investments and savings far exceed the sum of the individual categories of dividends and interest?

[JulieS · Accepted solution]

If your investment income totals far exceed the amounts listed on your 1099-INT and 1099-DIV, that suggests you have duplicated something, or accidently downloaded it twice, so it is worth reviewing. 

Form 1099-INT is very straight forward. In most cases you have an amount in box 1 or box 3. If you had an amount in both box 1 and box 3, you should add them together to get the total interest income.

Form 1099-DIV is more complex. In most cases there is just a number in box 1a and 1b. The amount in box 1b is also included in box 1a, so just count 1a as your amount of dividends. 

Boxes 2a, 2b, 2c, 2d, 2e and 2f are different kinds of gains, so those amounts add to your investment income. The remaining boxes may affect your total tax, but do not increase your total investment income. 

In particular, box 2a, total capital gains distributions can throw people off because the amount ends up on line 7  of your 1040 and is part of your total investment income. 

In addition, you may have investment income from Schedule K-1, Form 1099-B, or 1099-MISC. 

If it still looks wrong, you should take a look your Schedule B, or check lines 2, 3 and 7 on your Form 1040.

If you are using TurboTax online, you can check your 1040, even if you have not finished yet:

1. On the left side menu, select  Tax Tools near the bottom.
2. Select Tools.
3. Select View Tax Summary from the list at the bottom of this box.
4. Select Preview my 1040 from the center of the left side menu.

Your interest will be on line 2, your dividends on line 3 and any capital gains, or long term capital gains distributions will be on line 7.

If you are using TurboTax Desktop (disc or download):

1. Select the Forms icon in the upper right corner.
2. Highlight Form 1040 from the list on the left.
3. Your interest will be on line 2, your dividends on line 3 and any capital gains, or long term capital gains distributions will be on line 7.
4. If you have a Schedule B, you can highlight that and see your individual entries.