Exempt-interest dividends added to Ordinary Div?

Forum|Forum|3 years ago
February 18, 2023
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My 1099-DIV shows $X in Box 1a for Total Ordinary Dividends and $Y in Box 12 for Exempt-Interest Dividends. On the Turbo Tax Deductions & Credits screen, the total Dividends on 1099-DIV equals Box 1a + Box 12 ($X + $Y). Is this correct? Shouldn't the exempt dividends be subtracted from the total dividends? When I further open the screen for that line item in Turbo Tax the entries match my 1099 Boxes 2a (Cap Gains Dist), 12 (Exempt Div), and 1a (Ord Div).

Dividends

Best answer by rjs

No, exempt-interest dividends should not be subtracted from anything. The exempt-interest dividends in box 12 are separate, and are not included in the amount in any other box.

Don't worry about what the TurboTax summary screen shows. That's not what goes on your tax return. There is no "total dividends" entry on the tax return.

rjsAnswer

Employee

No, exempt-interest dividends should not be subtracted from anything. The exempt-interest dividends in box 12 are separate, and are not included in the amount in any other box.

Don't worry about what the TurboTax summary screen shows. That's not what goes on your tax return. There is no "total dividends" entry on the tax return.

jacob09jacob

Why is exempt dividends added to ordinary dividends

AbrahamT

Although tax exempt interest is generally not taxable under the regular federal income tax, a portion of this income may be subject to state and local taxes and/or the federal alternative minimum tax.

For information on how to enter tax exempt interest, see HERE.

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