How to File a Corrected 1099 Div

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Three Parts:Initiating a Corrected 1099-Div FormReceiving a Corrected 1099-Div FormFiling an Amended Tax ReturnCommunity Q&A

A 1099-Div form is what banks, brokerage houses and other financial institutions will use to notify you each year of dividend income that you receive. You need to use these forms to complete your annual income tax returns. Occasionally, a 1099-Div may need to be corrected. When a 1099-Div is incorrect, you need to respond quickly to correct the error. If the institution identifies the error, then you may receive a corrected 1099-Div after completing your tax return, and you may need to file an amendment.

Part 1

Initiating a Corrected 1099-Div Form

1. 1

   Read your 1099-Div carefully.

   By late January of each year, you should receive a 1099-Div form from any institution that issued you any dividend payouts during the year.

   ^[1]

   The 1099-Div is used to report several different types of dividend income. It is your responsibility as the taxpayer to read the form carefully and identify any mistakes. The 1099-Div reports the following types of income:

   ^[2]

   • Ordinary dividends
   • Capital gain distributions
   • Non-dividend distributions
   • Cash and noncash liquidation distributions
   • Exempt interest dividends

2. 2

   Notify sender of any errors.

   If you identify any errors on the 1099-Div that you receive, you must immediately notify the institution that sent it to you. If you notify the sender quickly enough, they may not have already submitted the incorrect form to the IRS, and you can save everyone some additional work.

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   • There is a window of time built in between the date that the institution sends you the 1099-Div and sends a copy to the IRS. If you identify the error during this window, then correcting the mistake will be easier.

3. 3

   Demand a corrected 1099-Div form.

   When you identify an error, regardless of the amount, you should tell the issuing institution to send you a corrected one. If the broker or customer service representative you speak to is unwilling to handle this, continue making calls and ask for a manager or supervisor.

   ^[4]

   • When you reach someone, say, “I received a 1099-Div form that is incorrect. The amount in Box One says I earned dividends of $5,000, but my records show that it should be 3,000.” Keep notes of your conversation.
   • The 1099-Div is submitted to the IRS and is used in calculating your taxes, so it must be accurate. An incorrect form or a discrepancy between the form submitted to the IRS and the information you report on your tax return can lead to an audit.

Part 2

Receiving a Corrected 1099-Div Form

1. 1

   Review the corrected form carefully.

   You may receive a corrected 1099-Div form by your own request, or a corrected form may just arrive unexpectedly. In either case, you should study it carefully. Compare the information on the 1099-Div form to your own records.

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2. 2

   Determine the change in your taxes.

   In most cases, the information on a 1099-Div form relates to income that you have received over the course of the year. Some of this income will be taxable, while some may not. Decide whether the information will result in a change in your taxes.

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   • The instructions that accompany the 1099-Div will tell you where to report the income on your 1040 or 1040A form. For some types of income, such as capital gains, you may need to do some additional work and complete additional forms to determine whether the income is taxable.
   • If you receive the corrected 1099-Div before you filed your tax return, then you are lucky. Simply use the corrected form instead of the original in preparing your tax return.

3. 3

   Remember the state reporting.

   Most states in the U.S. have their own income tax reporting requirements as well. A corrected 1099-Div may affect your state tax return as well as your federal return. When you receive the corrected 1099-Div, check your state tax return to determine whether any changes are necessary.

   ^[7]

4. 4

   Decide whether to file an amended tax return.

   A corrected 1099-Div does not automatically require you to file an amended tax return. You should file an amended tax return if the correction creates a significant change in your tax obligation or if it results in your being owed a refund. Some tax professionals recommend that you file an amended return to represent any change on a 1099-Div form.

   ^[8]

   Nevertheless, the following are some reasons you might receive a corrected 1099-Div that would not require amending your tax return:

   ^[9]

   • If the correction was only to re-characterize the type of dividend but not the amount, then there may be no change to your tax obligation.
   • If the change is of a minimal amount ($10 or less), no amended return would be required.

Part 3

Filing an Amended Tax Return

1. 1

   Use Form 1040X.

   If you determine that you need to file an amended return because of a corrected 1099-Div, you will need to file Form 1040X. You can access a PDF copy of this form at

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

   . You will be able to complete the form directly on the computer and then print a complete, typed form. Save a copy of the completed form for your records.

2. 2

   Refer to your original filing.

   When you complete Form 1040X, you will need to have your original filing, whether Form 1040 or 1040A, available. You will make references to the information that you filed originally and highlight any changes.

   ^[10]

   • In most cases, the changes caused by a corrected 1099-Div will be to your income. You will report changed income amounts on Line 1 and Line 5 of Form 1040X.

3. 3

   Explain the reason for the change.

   In Part III of Form 1040X, you are asked to provide a brief explanation for the amendment. This is where you can explain that you received a corrected 1099-Div form. If possible, explain how and when the need for the correction arose and provide the dates that you received the 1099-Div.

   ^[11]

   • For example, you might say, “On January 20, 2016, I received a 1099-Div that reported $100,000 of dividend income. In fact, my dividend for the year was $10,000. I notified the issuer of this error, and I received a corrected 1099-Div on March 16, 2016. By then, I had already filed my Form 1040 tax return.”

4. 4

   Attach the corrected 1099-Div.

   The corrected 1099-Div will come with multiple copies. One of these will be marked to send to the IRS. Attach that copy to your completed 1040X.

   ^[12]

   • You should receive an additional copy of the corrected 1099-Div for your state filing. If you determine that you need to file an amended state return, attach a copy to that as well.

5. 5

   File by mail.

   You may not file Form 1040X electronically. When the form is complete, print a paper copy of it and sign where indicated. Keep a copy for your records. Mail the completed Form 1040X, along with the copy of the corrected 1099-Div, to one of the following addresses:

   ^[13]

   • If you live in Florida, Louisiana, Mississippi or Texas, send it to:
     • Department of the Treasury, Internal Revenue Service, Austin, TX 73301-0052.
   • If you live in Alaska, Arizona, Arkansas, California, Colorado, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Montana, Nebraska, Nevada, New Mexico, North Dakota, Ohio, Oklahoma, Oregon, South Dakota, Utah, Washington, Wisconsin, or Wyoming, send it to:
     • Department of the Treasury, Internal Revenue Service, Fresno, CA 93888-0422.
   • If you live in Alabama, Connecticut, Delaware, District of Columbia, Georgia, Kentucky, Maine, Maryland, Massachusetts, Missouri, New Hampshire, New Jersey, New York, North Carolina, Pennsylvania, Rhode Island, South Carolina, Tennessee, Vermont, Virginia, or West Virginia, send it to:
     • Department of the Treasury, Internal Revenue Service, Kansas City, MO 64999-0052.
   • If you live anywhere else, send it to:
     • Department of the Treasury, Internal Revenue Service,Austin, TX 73301-0215.

6. 6

   Meet the deadline.

   If you decide to file an amended tax return to submit the corrected 1099-Div form, you must meet whichever of the following deadlines applies to you:

   ^[14]

   • If you owe an additional tax, you must file the 1040X and make your additional payment by the original tax deadline (approximately April 15).
   • If you are claiming a refund, you must file the 1040X within three years of the date of your original 1040 or 1040A filling or two years after you paid the tax, whichever is later.

7. 7

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Tips

• Remember that a corrected 1099-Div may affect both your federal taxes as well as your state taxes.

Warnings

• You are responsible for completely and correctly reporting all of your income to the IRS and your state income tax office. Failing to receive a 1099-Div form or receiving an incorrect 1099-Div form does not relieve you of this obligation.

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