Question

Why does a dividend decrease my taxes due?

Forum|Forum|6 years ago
February 8, 2020
1 reply
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I received a 1099-DIV with a qualified dividend amount. When I put the dividend in, my federal tax owed goes DOWN. That doesn't make sense to me and makes me think there is a bug in the 2019 software. Anybody else run into this? If I delete the dividend, my taxes go back up. Thanks!

VictoriaD75

While qualified dividends increase your total income, they are taxed at a favorable rate less than the ordinary income rate.

Keep in mind that the refund tracker is dynamic and may change with every click or entry. Your refund amount is not finalized until you have completed your entries and reviewed your return. It is there as a guide only and not a final amount until the return is complete.

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