Tax question

[FREE866]

I've found over the years that people on this site are wiser than most accountants so I'm going to ask the question....


On my 1099 under the "Dividends and Distribution" section ( Form 1099-DIV)
There is a line item 1A for "total ordinary dividends" as well as a line item 1B for "qualified dividends".
In my case 1A is $9910 and 1B is $8105



Here is my question....
when I input the numbers on this site:


https://www.irscalculators.com/tax-calculator


the field under "capital gains" stipulates "long term capital gains and qualified dividends"


and in the field "unearned income" it asks for a few sources and one is "ordinary dividends" so it looks like I pay taxes on both even though my total income in dividends I received was really only $9910


so again i'm inputting the $8105 as part of capital gains section and the $9910 so I'm technically getting taxed twice...


I must be missing something...


any expert numbers folks have insight into this?


thanks

 

[SevenUp]

Put $1805 (the result of $9910 - $8105) into ordinary dividends.

 

[FREE866]

Put $1805 (the result of $9910 - $8105) into ordinary dividends.

Thank you....I'm an idiot


The other issue is that IRS and state tax calculator doesn't include NYC taxes...so the number it had shown was much less than what Turbotax is saying i owe.....

 

[SecondCor521]

SevenUp is correct.

If you work through all the IRS calculations in the worksheet, you'll see that 1B is a subset of 1A. Similarly, line 3b is a subset of line 3a on Form 1040.

 

[Montecfo]

It is confusing for sure.

 

[flyingaway]

In Form-1099 1a Total ordinary income is the ORDINARY dividends, 1b is qualified dividends.

On tax form, these are also 1a (ordinary dividends) and 1b (qualified dividends).

Are they the same?

 

[SevenUp]

In Form-1099 1a Total ordinary income is the ORDINARY dividends, 1b is qualified dividends.

On tax form, these are also 1a (ordinary dividends) and 1b (qualified dividends).

Are they the same?

"Qualified" is a subset of "ordinary". The difference between those numbers is often referred to as "non-qualified" dividends.

 

[flyingaway]

"Qualified" is a subset of "ordinary". The difference between those numbers is often referred to as "non-qualified" dividends.

in #2, you seem to say that "ordinary" is "non-qualified".

 

[SevenUp]

"Qualified" is a subset of "ordinary". The difference between those numbers is often referred to as "non-qualified" dividends.

in #2, you seem to say that "ordinary" is "non-qualified".

Only because that is the label used by the tax estimation tool referenced in the OP. A rose by any other name....

 

[SecondCor521]

In Form-1099 1a Total ordinary income is the ORDINARY dividends, 1b is qualified dividends.

On tax form, these are also 1a (ordinary dividends) and 1b (qualified dividends).

Are they the same?

On the 1040, it's line 3a and 3b, as I mentioned in an earlier reply (see post #4 on this thread).

Yes, they're the same thing.