Reqirement to Amend Return?

Forum|Forum|3 years ago
March 31, 2023
1 reply
17 views

Broker issued corrected form 1099, reducing dividend income by less than one dollar. That 2022 tax return had already been fully processed before the corrected 1099 was received. The change is in taxpayer's favor, but is so small as to be not worth the effort. Is an amended return nevertheless required?

Amend

Best answer by JohnB5677

Expert Reviewed

No, you must make every effort to include all income in your tax return.

However, your tax return must be "substantially correct".
The IRS defines this as: "For individuals, a substantial understatement of tax applies if you understate your tax liability by 10% of the tax required to be shown on your tax return or $5,000, whichever is greater."
The $8 would not generate a significant change.

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DoninGA

Level 15

No, for this small amount an amended return would not be required.

billham68

Level 2

Same situation as original post but three corrections on 1099. Ordinary dividends +$8, Qualified dividends -$8, and Foreign Taxes paid +$8. Is it necessary to amend my return for such minor corrections.

JohnB5677Answer

Level 15

Expert Reviewed

No, you must make every effort to include all income in your tax return.

However, your tax return must be "substantially correct".
The IRS defines this as: "For individuals, a substantial understatement of tax applies if you understate your tax liability by 10% of the tax required to be shown on your tax return or $5,000, whichever is greater."
The $8 would not generate a significant change.