Received my Schedule K-1 from company after filing using 1099-B from broker on my 8949 and D (540) (California). Do I amend federal and state? Do I need an extension?

[whoisdavin3]

I have already filed and received my federal and state tax returns using form 1099-B from my broker and reported it on Form 8949 and Schedule D, but just received a Schedule K-1 (Form 1065) from a PTP (publicly traded partner). It shows my husband is an Individual, Domestic, Limited Partner. He withdrew/sold part of the amount he held (tax basis) and did not contribute property with built in loss/gain. It sustained ordinary business income loss, interest income, ordinary dividends, other income loss (Sec. 1256 contracts & straddles), and investment income. The ordinary dividends did not show up on my 1099-DIV, nor do the Schecule K-1's Withdrawals & Distributions match up with the 1099's reported proceeds.

Do I need to file an amendment and extension to my federal and state returns?

Thanks in advance.

[TomYoung · Accepted solution]

Well you should amend your "as filed" income tax return to get all that extra information incorporated into the amendment, including the adjustment to the gain/loss reported on the 1099-B.  (Broker's don't have the correct amount on the 1099-B, only what you paid for the investment.  Your actual basis adjusts as the partnership "passes through" to partners their share of income and loss.  Too, any money distributed to you by the partnership is not "dividends" it's most commonly treated as a reduction in your basis.)

I see no reason to file for an "extension"; that's used when you actually can't submit your income tax return by the due date, but you've already filed.  Simply get the amended income tax return in by 4/18/18 and everything's fine.

Tom Young