For 2009 I have $597.54 of dividend income. My 1099 shows Ordinary Dividends of $597.54 (Box 1a) and Qualified Dividends of $507.54 (Box 1b). When I enter this in Turbo Tax it shows total dividend income of $1,015, double what it should be. Should entries for Box 1a and 1b be made or just one of them?
Thanks.
I don't use TT but the right answer is form 1040 line 9a should show ordinary dividend and line 9b should show qualified dividends. Play with it until you get the right answer.
Both entries should be made. The 1a box is a superset that includes the 1b box. They may be equal, but 1a would never be smaller than
1b. Those boxes from all of your dividend sources get added up and put where Art said.Maybe you entered a second 1099-div or there is a K-1 with dividends. Or you have some dividends entered somewhere else.
Your box 1a +1b would come to $1,105.08 anyway -- not $1,015. If your $1,015 was a typo, maybe you entered the same 1099-div twice.
BTW - "wayne hummer" is the name of an investment firm :)
here is the TT newsgroup - alt.comp.software.financial.quicken
I didn't x-post, since this is moderated.... I've no trouble with entering all my divs into TT - Not sure where your total is coming from, sure you didn't enter it twice ?
You might concinue this over in the TT forum -
Looking at my tax return prepared by H&R Block Home Edition, 9a shows the total dividends and 9b shows how much of 9a are qualified dividends. For computation purposes, dividends taxable as ordinary income are 9a minus 9b, while 5% or 15% of 9b is the tax on the qualified dividends.
And see Form 1099DIV and also Form 1040 Line 9a, which label what you name "total dividends" as "Ordinary Dividends."
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