topic Re: Corrected 1099-DIV in After you file

Corrected 1099-DIV

Burt333 — Thu, 29 Apr 2021 15:04:47 GMT

Yesterday, two weeks after I electronically filed my 2020 tax return, I received a corrected 1099-DIV report from Fidelity Investments. It changed "Foreign Taxes Paid" from $157.11 to $156.10.

Is that change significant enough that I should file an amended return? I have been notified that my Federal and State returns have been accepted by the the I.R.S. and the Michigan Dept. of Treasury.

Burt Bouwkamp on 4/29/21

(my E-mail address is [email address removed])

Re: Corrected 1099-DIV

Bsch4477 — Thu, 29 Apr 2021 15:39:12 GMT

It is not necessary to amend your return for that small a change, if any, in your tax liability.

Re: Corrected 1099-DIV

AmyC — Thu, 29 Apr 2021 21:35:05 GMT

A $1 tax difference, paperwork, processing, etc is more trouble to the IRS. The IRS prefer you not file an amended return for minimal differences.

Re: Corrected 1099-DIV

Ted61 — Thu, 29 Apr 2021 22:10:10 GMT

I received a similar notice from Fidelity after filing my Federal and State returns and receiving both of my refunds as well. In my case, the reduction in foreign tax paid is $2. In fact, this has no impact on my foreign tax credit and my overall tax liability because, like many taxpayers, my foreign tax credit is limited by the foreign income percentage calculation on Form 1116. No change in tax means no need to file an amended return.

There is one issue though, on which I could use some TurboTax advice: Unused foreign tax credits are carried forward to future years. Because of the Fidelity error, my foreign tax credit carryforward to 2021 is now too high by $2. Can I handle that by simply overriding the carryforward amount in TurboTax when I do my returns next year? I realize the amount is small, and there is a good chance that my foreign tax credit carryforward will never be fully utilized before the ten-year limit, but if possible I'd like to get the number right.