I missed the step to exclude US Gov't interest from 1099-DIV. How to amend tax return now to get credit for $ paid to State?

[DanG12]

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! 

[ee-ea]

https://ttlc.intuit.com/turbotax-support/en-us/help-article/tax-return/need-amend-state-return/L3hGF...

[DanG12]

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!

[SteamTrain]

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.

________

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)

[DanG12]

Thanks very much!  This helps a lot.