I received a corrected 1099 misc after I filed my federal taxes. What do I do ?

[aquilino73]

The difference is $160 more than the original 1099 misc.

[ModestaL]

If you have already e-filed or mailed the return, then you will need to wait until the IRS has accepted or rejected that return before you can make any changes.  

• If they reject it, then just make the needed changes (add your corrected 1099-MISC) and re-submit the return.  
• If they accept it, then you will need to wait until you have received your refund and then amend that return to make changes (add your corrected 1099-MISC). You will need to send in any forms that caused the need for an amendment (Original 1040 Form, new 1040X Form. Print, sign and mail your forms to the IRS.

Click here for instructions for amending a return.

[erblaser]

What about the State return?  Do I have to pay again to submit an amended state return?

[WendyN2]

If your State return bottom line was also affected by this correction, then yes, you will have to also file an amended for the State. 

If the information you need to Amend in TurboTax requires an upgrade to the next level of TurboTax, you will be prompted to upgrade which will result in an additional cost. You can review your fees to see a breakdown of what you are being charged for. 

Otherwise, there is no fee.

[erblaser]

The corrected form shows a $3 reduction in the amount of a loss in the brokerage 1099 form.  Do you still need to file an amended tax form, even for such a small amount?

[PattiF]

No, you do not need to amend your federal or state return for such a small amount.

[erblaser]

Thank you.  It would be nice to know if there is generally recognized limit as to what size in dollar amount can be ignored for purpose of the "must file" category.

[ToddL99]

There isn't a "generally recognized" limit as to what can be ignored, either on an original return or when a correction (amendment) is needed. Different taxpayers would have a different option on what is too small (or too large) to ignore.

If you fail to report a change in your return (e.g. a late-arriving or corrected tax form), the taxing authority may send you a notice later in the year asking about the omission.

For the IRS, this is not an audit - it is an automated  Notice of Proposed Increase in Taxes.

They will calculate the tax due (plus interest and penalties) and you can send them a check. No amended return is necessary, so you won't have to upgrade. 

The IRS uses this simplified procedure since It is extremely common to omit reporting a Form 1099-MISC. You file before they arrive, they get lost in the mail, get lost in your house or get tossed along with junk mail.  

[erblaser]

FYI, in my case the issue was a corrected 1099 Composite form from my brokerage, not a 1099-Misc.  Not sure that matters for the question of a small change in an underlying mutual fund correction within the brokerage account.

Regardless, my thanks.

[ToddL99]

If the "1099 Composite Statement" changed, then something included in the composite (1099-INT, 1099-DIV, 1099-B or Supplementary Information) changed.

No matter, your options are still the same - amend your return to report what might be an immaterial change or wait for the IRS to "grade" your return and either send you a refund or propose an increase in your taxes.

[jdelmonte]

I recently received a corrected 1099 (already received my refund from the IRS) .

First 1099 had 1,800.63 for Interest Income and $2,145.80 for Other Income (1099-MISC)

Corrected 1099 now shows $0.63 for Interest Income and $3,945.80 for Other Income (1099-MISC)

Long story short, they moved $1,800 from Interest Income to Other Income

The other income is NOT work related so in theory since neither amount had taxes taken out my tax situation will not change.   So I still need to notify the IRS about the changes, even though it makes no difference tax wise?

Thanks!