Why is Box 11$ on 1099 Div being added to my total Federal Tax Bill? I thought this value was tax exempt for Federal calcs.

mahzsp · ‎February 4, 2020

SteamTrain · ‎February 4, 2020

No, it shouldn't.

BUT, it is used to determine what % of SS income is taxable...and also used in determining whether you are eligible for any of the Healthcare Tax Credit (Obamacare)...so the first one of those could increase taxes on SS income, and the other could reduce the healthcare credit.

____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*

douglasrhayman · ‎February 10, 2020

Thank you for that explanation. This was driving me absolutely crazy, as entry into Box 11 was causing my FED tax to go up.

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Why is Box 11$ on 1099 Div being added to my total Federal Tax Bill? I thought this value was tax exempt for Federal calcs.