File a State Amended Return? (New 1099-DIV)

[dillon_s]

Hello,

In early-February 2022, I submitted my original tax return with TurboTax Online w/Premier. The return was approved by the IRS, and I have already received a refund for my federal taxes. The state taxes (Colorado) have been accepted, but no other progress thus far. 

5 days after filing my return, I received a new 1099-DIV form. This was the first time I ever received this form and was a bit frustrated due to the timeline and amounts. Anyways, here are the important figures. 

[] FATCA Filing Requirement (Unchecked)

1a- Total ordinary dividends - $2.25

1b- Qualified dividends - $1.85

2a- Total capital gains distributions - $0.00

5- Section 199A dividends - $0.06

7- Foreign tax paid: $0.05

Total Foreign tax withheld: -0.05

My question is this: Do I need to file an amended return for Colorado? There isn't any state-specific information on this form and TurboTax Online did ask about this. It seems a bit silly to have to file an amended return for $0.05. I'm still very likely to submit an amended federal return but thought I would make sure first as it seems unnecessary for one state.

Any help, assistance, or further guidance would be greatly appreciated! 

[jtax]

There is no duty to ever file an amended federal return for a mistake. I don't know about the state.

Sometimes you may want to file an amended return either to get an additional refund or to lower interest or penalties that the taxing authority might impose if they catch you.

In your case ,with such a small dividend, I wouldn't bother filing an amended return. $2 of extra income doesn't usually result in any extra tax. Especially if they are qualified dividends. Even if it did and you were unlucky with round up it could only be $1. 

So if either the IRS or CO does catch that and does asses the extra $1 of income, then you can just pay it when they bill you in 6 months or a year. Even if that were to charge interest it won't be anything. The cost in your time and postage to amend would be much larger than the potential bill.

I bet you'll never hear from them.

If the amount were larger, say $1000, I would suggest amending. 

In the future understand that 1099-DIVs/B can be issued well into February and even March or later depending upon the investments owned. (Some can't be issued until the companies owned file their taxes and they can sometimes get extensions. That's a real joy of investment in partnerships and closely-held companies).

[JulieS · Accepted solution]

No, you probably don't need to file a state or federal amendment for such a small amount. Unless you are on the edge of a new tax bracket, or phase out, $2 should not change your return. 

To be sure, you can start an amendment, add the 1099-DIV and see if it changes your tax. If it doesn't create an amount due, you don't actually have to file the 1040X. 

Here is how to start your amendment:

1. Log in to your account, scroll to the bottom of the first page, select 2021, then Amend using TurboTax Online.
2. Answer the first few questions, then select your reason for amending.
3. Go to Federal Taxes in the upper left.
4. Select Wages and Income toward the upper left.
5. Scroll down, or expand the list and find Interest and Dividends.
6. Expand that section and find Dividends on 1099-DIV.
7. Click on Add/ Edit to the right.
8. Answer the first question Yes.
9. Click Continue.
10. Click on Change how I enter my form in the lower right corner.
11. Select Type it in myself.
12. Fill in the information from your 1099-DIV.
13. Click Continue.

You will notice that when you start the amendment, your refund or tax due will reset to $0. If it is still at $0 after you added the 1099-DIV, you can cancel the amendment and just keep the 1099-DIV with your tax records.

[dillon_s]

Hello,

Thank you for the prompt response! I began adding the missing 1099-DIV and both the federal and state values remained at $0, even after getting to the final page before submitting.

Thank you for your assistance!

[dillon_s]

Hello,

Thank you for your prompt response! For the past five years, the investment platform I've used has never issued me a tax form or 1099. I almost figured that this year wouldn't be different. Something must have changed within the past year, whether with my account/holdings or tax reporting standards in general. Nonetheless, I guess I learned my lesson for the next tax year! 

Thanks again for your assistance!