Revised Form 1099 MISC

[ljumpwill54]

Revised Form 1099 MISC

I E Filed my 2020 Federal and State tax returns on last Thursday Feb. 18th, using Turbo Tax Home & Business, and have received a notice of acceptance for both my Federal and CA State return. 

However, on Friday, Feb. 19th, I received an email from TD Ameritrade indicating that they had issued a "corrected" 1099.

I reviewed the "corrected" 1099 and find that the total corrections they made amount to less than $60.00 from the original totals that were reflected in the 1099 I used when filing my taxes.

Question:

Is it necessary to prepare an "Amended" return to reflect this "small" change to the 1099, or is the amount of the change so insignificant that I don't need to file an Amended return?

Thanks.

Lawrence Williams

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[#2]

I E Filed my 2020 Federal and State tax returns on last Thursday Feb. 18th, using Turbo Tax Home & Business, and have received a notice of acceptance for both my Federal and CA State return. 

However, on Friday, Feb. 19th, I received an email from TD Ameritrade indicating that they had issued a "corrected" 1099.

I reviewed the "corrected" 1099 and find that the total corrections they made amount to less than $60.00 from the original totals that were reflected in the 1099 I used when filing my taxes.

Question:

Is it necessary to prepare an "Amended" return to reflect this "small" change to the 1099, or is the amount of the change so insignificant that I don't need to file an Amended return?

Thanks.

Lawrence Williams

[MaryM428]

Yes, it would be best to amend your return to report the corrected 1099.  TurboTax makes amending a return very quick and easy.  You need to wait until the original return has been processed and until the 1040X amend form is available in mid to late March.

You could also wait for the IRS to send you a notice about the discrepancy in the 1099.  That could end up involving penalties and interest for late payment.

[ljumpwill54]

Hi Mary,

I want to be sure I understand what you're suggesting.

1. Even though the total difference between the 1099 that I used when I filed, and the "corrected" 1099 is only about $59.00, I should still file an amended return?

2. I should wait until the IRS has processed my return and issued my "refund" before I submit the amended return in order to avoid "'penalties and interest"?

3. I should also wait to file the amended return until around mid to late March because the 1040X form will not be available on Turbo Tax until then?

Thanks for your response.

Lawrence Williams 

[MaryM428]

You do understand everything that I am saying.  You can get a "head start on the amend by signing into TurboTax and click Add a State.  That will let you make the changes needed and save them for when amend is available.

[ljumpwill54]

Hi Mary,

I'm confused; Click "Add a State" or should it be "Amend a Filed Return?"

Thanks

Lawrence

[PattiF · Accepted solution]

An alternative to filing an amended return that may not make a difference in your tax liability would be to add this income to your AGI. Then see where the adjusted AGI would fall in the tax table. If there is no change in what you would owe, then you do not need to amend your return.

2020 IRS Tax Table

[ljumpwill54]

The changes made on the "corrected 1099" would actually reduce my AGI by approximately $60.00, therefore I will not file an Amended Return for 2020.

Thanks much for your support.

Lawrence

[Ljhall]

I need to look at my return and see if I need to edit anything and resubmit it