Question

Erroneous 1099-DIV

Forum|Forum|2 years ago
March 8, 2024
1 reply
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I rolled over part of my 401K to a rollover IRA in early 2023. The rollover of company stocks for that rollover went through a custodian (Computershare) before being deposited into my Rollover IRA account. The company paid dividends in that short window while the shares were with Computershare. Computershare in turn mailed me a dividend check for these which I promptly deposited into my Rollover IRA. Computershare issued me a 1099-DIV for those even though I had notified them and provided documentation that they were rolled over into an IRA. They acknowledge that the rollover should not be taxed but are unwilling to correct the 1099-DIV and referred me to the Rollover IRA financial institution who in turn referred me back to them!! How do I correctly report this in Turbotax so it is treated as the non-taxable rollover it was? Thanks

fanfare

Did the new custodian know you were doing a 60-day rollover deposit?

The first custodian should give you a 1099-R not a 1099-DIV

@Taxed2D

T

Taxed2DAuthor

They did know that I was doing a 60 day deposit into a rollover IRA but insist that either the financial institution for my rollover IRA correct this or I figure out a form to fill out to notify the IRS!

T

ThomasM125

I have the exact same issue this tax year 2024. Can you tell me what was the resolution?

You should enter the 1099-DIV form and on the screen that says Do these uncommon situations apply? Choose the I need to adjust these dividends option.

On the next screen you can choose the Other adjustment, including restricted stock dividends reported on Form W-2 option and then on the next screen you can enter the dividend amount as an adjustment to cancel out the dividend income.