i did my taxes back in feb they are saying this 49 dollars is holding up my federal return. That if i don't give them a answer in 20 days they will either increase the tax i owe or reduce my refund. It took almost 9 months to tell me this lol
Line 7 is looking for a Sch D form if required. If the form is not required then the box should have been marked. Look at your 1040 ... was that box marked ? Or do you have the Sch D ?
Did you MAIL in your return by any chance ???
What year is the IRS asking about? If it's before 2020, line 7 of Form 1040 is something different.
Is the $49 on Form 1040 line 7 a gain (positive number) or a loss (negative number)?
Does the IRS notice say that they think line 7 should be a higher amount, or that the $49 should be somewhere else, not on line 7 at all? Does the notice say there are errors on your tax return anywhere else besides Form 1040 line 7?
Where did the $49 on line 7 come from? If you're talking about 2020 or 2021, and the box on line 7 is checked, the $49 should be capital gain distributions from box 2a of a Form 1099-DIV that you received. Is that where it came from? Does the 1099-DIV have any amounts in boxes 2b, 2c, or 2d? If the IRS is saying that they will increase your tax or reduce your refund, that means they think that line 7 should be more than $49, or that the $49 is ordinary income, not a capital gain distribution. Did you get any other 1099-DIV forms with amounts in box 2a that you forgot to enter? Did you mistakenly enter the amount from 1099-DIV box 2a incorrectly, or enter an amount in box 2a that was actually in a different box on the 1099-DIV?
If you're talking about 2020 or 2021, and the box on line 7 is not checked, there should be a Schedule D in your tax return, and line 16 on Schedule D (at the top of page 2) should be $49. Is that what you have? If the IRS is saying that it should be more than $49, you may have entered a Form 1099-B incorrectly, or omitted investment sales that were on a 1099-B.
Also note that forms 1099-DIV or 1099-B might be sections of a consolidated brokerage statement, rather than separate forms.
@bignat137 wrote:
I put in where it came from when i filed
What did you put in, and where did you put it? There is no place to enter a description or explanation for capital gain distributions from Form 1099-DIV. Is the $49 from investment sales on Schedule D or Form 8949?
that box has been x and yes this year they told me to mail it for some reason. usually they allow me to do it electronically
okay i do have a 1099-DIV in box 2a it has a total 48.76. Another thing i have is a 1099 INT only box filled is interest income of 131.84. The IRS is telling me basically show where this money comes in 20 days of getting this letter. when i send the info they will issue me my refund in 6 to 8 weeks. If they dont get a response they may have to increase the tax i owe or reduce my refund.
it's strange that they want me to fax this information to them yet they tell me. we cant acknowledge if we ever get the fax lol
i cant remember i did this back in february i guess i should just go back into my return and see what i did. before i send anything to the irs