Filing amended return ? ? ?


R

Ray

To my chagrin, I just received a corrected composite 1099
statement from my broker, which early in the year merged
with another discount broker. I was under the impression
that the broker was required by law to get this information
to me by Jan. 31. I received nothing prior to the
"corrected" 1099.

Since it reports more than $1,000 in dividends, I guess I
should file an amended return. I suppose if I don't file the
amended return by April 15, I stand to be penalized.

In filing the correction, do I have to do the entire return
over, or just file the form reporting the deficiency?

Where do I get information on how to do this?
 
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F

Frederick Lorca

To my chagrin, I just received a corrected composite 1099
statement from my broker, which early in the year merged
with another discount broker. I was under the impression
that the broker was required by law to get this information
to me by Jan. 31. I received nothing prior to the
"corrected" 1099.

Since it reports more than $1,000 in dividends, I guess I
should file an amended return. I suppose if I don't file the
amended return by April 15, I stand to be penalized.

In filing the correction, do I have to do the entire return
over, or just file the form reporting the deficiency?

Where do I get information on how to do this?
Use Form 1040X to prepare your amended return.

http://www.irs.gov/pub/irs-pdf/f1040x.pdf

If you use software, such as TurboTax, the software should
recompute your tax correctly on the amended return. You
expect to prepare the amended return manually and any of the
dividends are qualified dividends, you will need to compute
your corrected tax using the Qualified Dividends and Capital
Gain Tax Worksheet on page 38 of the Form 1040 instructions.

http://www.irs.gov/pub/irs-pdf/i1040gi.pdf

Since filed your original return timely, you will not be
penalized if you report the additional income after this
year's due date, which is April 17 by the way. You will be
charged interest but that should be de minimis. If the
additional $1,000 of dividends caused you owe $200 more tax
and you waited a couple of months after April 15 to file
your amended return, the interest would only amount to
between $2 and $3.

Frederick Lorca
 
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S

Shyster1040

Get Form 1040X and the instructions thereto. Generally, on
the amended return (i.e., Form 1040X), you only show the
relevant changes, you don't redo the entire return.
 
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P

Phil Marti

Ray said:
To my chagrin, I just received a corrected composite 1099
statement from my broker, which early in the year merged
with another discount broker. I was under the impression
that the broker was required by law to get this information
to me by Jan. 31. I received nothing prior to the
"corrected" 1099.

Since it reports more than $1,000 in dividends, I guess I
should file an amended return. I suppose if I don't file the
amended return by April 15, I stand to be penalized.
No penalty, but if you don't pay the additional amount of
tax by 4/17 you'll owe interest.
In filing the correction, do I have to do the entire return
over, or just file the form reporting the deficiency?
See Form 1040-X and its separate instructions. You will
also need Schedule B if your total dividend or interest
income is $1,500 or more.
 
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H

Herb Smith

Ray said:
To my chagrin, I just received a corrected composite 1099
statement from my broker, which early in the year merged
with =A0another discount broker. I was under the impression
that the broker was required by law to get this information
to me by Jan. 31. I received nothing prior to the
"corrected" 1099.
Welcome to the real world. Corrected 1099 forms seem to be
coming a "standard" issue for investors, as brokers try to
correctly report and allocate the types of income you
received.
Since it reports more than $1,000 in dividends, I guess I
should file an amended return. I suppose if I don't file the
amended return by April 15, I stand to be penalized.
Since these dividends were not reported earlier, that
additional income could cause you to be in an
underwithholding situation, and subject to underpayment
penalty. To avoid this, make an estimated payment prior to
April 17 to cover the additional taxes you will probably
owe. The amended return can be filed later.
In filing the correction, do I have to do the entire return
over, or just file the form reporting the deficiency?
No, you don't file the complete return again, just the 1040X
form, plus any schedules that change substantially - such as
Schedule B and D.
Where do I get information on how to do this?
The 1040X instructions
 
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R

Ray

Many thanks Herb -- I have proceeded accordingly, and it was
simple enough with TurboTax.
 
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