Hello All,
First time posting here. I'm using the Desktop version of TurboTax.
I just realized (after submitting my 2022 return), that I needed to take another step when importing my 1099-DIV to be able to exclude some U.S. Government interest (from a Treasury Inflation-Protected Security - TIPS) that I owned.
Missing this step meant that this interest was fully taxable on my California State tax return, when it should not have been (TIPS are Federally taxable, but not State taxable).
I see now there is a step after the 1099-DIV import that asks if any of "these uncommon situations apply to you" and that I should have checked the box saying that a "portion of these dividends is U.S. Government Interest".
How can I fix this and get the tax I mistakenly paid to my state for this interest?
I can go back into TT and check the proper box for the 1099-DIV and that should carry over to my State return to reduce my tax owed there, but do I also need to send the Federal IRS an amended tax return, too? The amount owed/due won't change at the Federal level, so not sure this is required?
And would I need to send along to the state a new Federal return as well?
Uggh.. This will be my first amended return in decades of filing! :(
Thanks a lot for any guidance!
Thanks for the link on that.
I'm still hoping to figure out though .. If all I'm doing is changing the Federal interview to say that some of my 1099-DIV interest came "US Government Interest" - which would not affect my Federal tax due/owed, would I still need to file an amended return with the IRS, or would I only need to file an amended return with the State, where my tax due will be less?
Thanks all for any advice!
Start the State amended tax return first...then go to the Federal section to change what you need to indicate the $$ amount for the 1099-DIV.
That doesn't change the Federal file in any way, so you don't need to actually amend the Federal forms.
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Alos, make sure the $$ amount you are putting in for US Gov Dividends is enough to bother amending the state. i.e. for every $100 of Govt dividends at 5% State tax is $5 back to you. (depends on your state's tax rate)