Question

Turbotax not calculating federal tax on dividend income

Forum|Forum|5 years ago
March 28, 2021
1 reply
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I am working on 2020 taxes and turbotax is not calculating federal taxes for dividend income. Total income for this year is ~$110k, mostly social security and dividends. I have imported the 1099 DIV from my broker and no tax burden is calculated. I wiped the return and started over 3 times. I entered the 1099 DIV info manually, still no federal tax being shown in the upper left box for federal tax due. The state tax appears to be calculating correctly. Spent 2 hours on the phone yesterday with the turbotax tax expert, to no avail. I've been using turbotax for 15 years and this has never happened before. seriously considering bailing out and going to HR Block. Anyone else seeing this issue? What am I doing wrong? Thoughts?

TurboTax Premier Online

Hal_Al

Employee

You seem to be saying that the "refund meter" at the top of the page doesn't change when you enter the 1099-Div.

Ignore that.

After entering the 1099-Div, check form 1040. If the dividends are on line 3b, they have been entered correctly. All or part of the dividends will also be shown on line 3a , as qualified dividends. Qualified Dividends are taxed at long term capital gains rate (0% for many people). The tax calculation will be shown on the "Qualified Dividends and capital gains worksheet".