corrected 1099-div. do I need to amend my return

[anonymous2]

total ordinary dividends has decreased by $7 on the Corrected form (1A)

Qualified dividends increased by $2 on the Corrected form (1B)

Section 897 ordinary dividends increased by .13c on the Corrected form(2E)

Non dividend distributions increased by $23 on the Corrected form (3)

Section 199A dividends increased by 85$ on the Corrected form(5)

After plugging in these numbers into the already submitted tax return my payment to IRS decreases by about $7.   Does this mean I don't need to re-submit my taxes, if I don't care about getting the $7 back.

thank you

[DMarkM1 · Accepted solution]

You are under no obligation to file an amended return.  The IRS will receive the corrected 1099 and apply it to your return.  If their calculations result in an increase in tax owed they will send you a letter with instructions.  Interest and penalties for late payment of any resulting taxes accrues from the original due date.  

You may or may not see a refund for a correction that decreased your taxes.    

[smilewsk]

In my case, the corrected 1099 DIV is from a tax year two years ago - 2021. It corrected the basis for a sale of non-covered shares of a gifted mutual fund in 2008 from $0 to $9252.99. However, when I filed the return 2 years ago, I reported the cost basis as $11,900 which resulted in a larger reported loss. I have supporting year end documentation from Vanguard that shows the basis was $11,900. At the time of the sale (done over the phone with an agent), I specified the particular lot I wanted to sell. Will there be any consequences if an amended return is not filed?

[DavidD66]

No, there will not be any problems or issues if you do not file an amended return.  You will be foregoing a capital loss of $2,647 which could be used to offset capital gains you incurred.   But you don't have to report it/file an amended return.