How to File a Corrected 1099‐Div

Co-authored by Alan Mehdiani, CPA

Last Updated: July 20, 2020 References

A 1099-Div form is what banks, brokerage houses and other financial institutions will use to notify you each year of dividend income that you receive. You need to use these forms to complete your annual income tax returns. Occasionally, a 1099-Div may need to be corrected. When a 1099-Div is incorrect, you need to respond quickly to correct the error. If the institution identifies the error, then you may receive a corrected 1099-Div after completing your tax return, and you may need to file an amendment.

Part 1

Part 1 of 3:

Initiating a Corrected 1099-Div Form

1
Read your 1099-Div carefully. By late January of each year, you should receive a 1099-Div form from any institution that issued you any dividend payouts during the year.^{[1]
X
Research source} The 1099-Div is used to report several different types of dividend income. It is your responsibility as the taxpayer to read the form carefully and identify any mistakes. The 1099-Div reports the following types of income:^{[2]
X
Trustworthy Source

Internal Revenue Service
U.S. government agency in charge of managing the Federal Tax Code

Go to source}
- Ordinary dividends
- Capital gain distributions
- Non-dividend distributions
- Cash and noncash liquidation distributions
- Exempt interest dividends
2
Notify sender of any errors. If you identify any errors on the 1099-Div that you receive, you must immediately notify the institution that sent it to you. If you notify the sender quickly enough, they may not have already submitted the incorrect form to the IRS, and you can save everyone some additional work.^{[3]
X
Research source}
- There is a window of time built in between the date that the institution sends you the 1099-Div and sends a copy to the IRS. If you identify the error during this window, then correcting the mistake will be easier.
Advertisement
3
Demand a corrected 1099-Div form. When you identify an error, regardless of the amount, you should tell the issuing institution to send you a corrected one. If the broker or customer service representative you speak to is unwilling to handle this, continue making calls and ask for a manager or supervisor.^{[4]
X
Research source}
- When you reach someone, say, “I received a 1099-Div form that is incorrect. The amount in Box One says I earned dividends of $5,000, but my records show that it should be 3,000.” Keep notes of your conversation.
- The 1099-Div is submitted to the IRS and is used in calculating your taxes, so it must be accurate. An incorrect form or a discrepancy between the form submitted to the IRS and the information you report on your tax return can lead to an audit.
Advertisement

Part 2

Part 2 of 3:

Receiving a Corrected 1099-Div Form

You may receive a corrected 1099-Div form by your own request, or a corrected form may just arrive unexpectedly. In either case, you should study it carefully. Compare the information on the 1099-Div form to your own records.^{[5]
X
Research source}
2
Determine the change in your taxes. In most cases, the information on a 1099-Div form relates to income that you have received over the course of the year. Some of this income will be taxable, while some may not. Decide whether the information will result in a change in your taxes.^{[6]
X
Trustworthy Source

Internal Revenue Service
U.S. government agency in charge of managing the Federal Tax Code

Go to source}
- The instructions that accompany the 1099-Div will tell you where to report the income on your 1040 or 1040A form. For some types of income, such as capital gains, you may need to do some additional work and complete additional forms to determine whether the income is taxable.
- If you receive the corrected 1099-Div before you filed your tax return, then you are lucky. Simply use the corrected form instead of the original in preparing your tax return.
Most states in the U.S. have their own income tax reporting requirements as well. A corrected 1099-Div may affect your state tax return as well as your federal return. When you receive the corrected 1099-Div, check your state tax return to determine whether any changes are necessary.^{[7]
X
Research source}
4
Decide whether to file an amended tax return. A corrected 1099-Div does not automatically require you to file an amended tax return. You should file an amended tax return if the correction creates a significant change in your tax obligation or if it results in your being owed a refund. Some tax professionals recommend that you file an amended return to represent any change on a 1099-Div form.^{[8]
X
Research source} Nevertheless, the following are some reasons you might receive a corrected 1099-Div that would not require amending your tax return:^{[9]
X
Research source}
- If the correction was only to re-characterize the type of dividend but not the amount, then there may be no change to your tax obligation.
- If the change is of a minimal amount ($10 or less), no amended return would be required.
Advertisement

Part 3

Part 3 of 3:

Filing an Amended Tax Return

If you determine that you need to file an amended return because of a corrected 1099-Div, you will need to file Form 1040X.^{[10]
X
Expert Source

Alan Mehdiani, CPA
Certified Public Accountant

Expert Interview. 9 July 2020.} You can access a PDF copy of this form at https://www.irs.gov/pub/irs-pdf/f1040x.pdf. You will be able to complete the form directly on the computer and then print a complete, typed form. Save a copy of the completed form for your records.
2
Refer to your original filing. When you complete Form 1040X, you will need to have your original filing, whether Form 1040 or 1040A, available. You will make references to the information that you filed originally and highlight any changes.^{[11]
X
Trustworthy Source

Internal Revenue Service
U.S. government agency in charge of managing the Federal Tax Code

Go to source}
- In most cases, the changes caused by a corrected 1099-Div will be to your income. You will report changed income amounts on Line 1 and Line 5 of Form 1040X.
3
Explain the reason for the change. In Part III of Form 1040X, you are asked to provide a brief explanation for the amendment. This is where you can explain that you received a corrected 1099-Div form. If possible, explain how and when the need for the correction arose and provide the dates that you received the 1099-Div.^{[12]
X
Trustworthy Source

Internal Revenue Service
U.S. government agency in charge of managing the Federal Tax Code

Go to source}
- For example, you might say, “On January 20, 2016, I received a 1099-Div that reported $100,000 of dividend income. In fact, my dividend for the year was $10,000. I notified the issuer of this error, and I received a corrected 1099-Div on March 16, 2016. By then, I had already filed my Form 1040 tax return.”
4
Attach the corrected 1099-Div. The corrected 1099-Div will come with multiple copies. One of these will be marked to send to the IRS. Attach that copy to your completed 1040X.^{[13]
X
Trustworthy Source

Internal Revenue Service
U.S. government agency in charge of managing the Federal Tax Code

Go to source}
- You should receive an additional copy of the corrected 1099-Div for your state filing. If you determine that you need to file an amended state return, attach a copy to that as well.
5
File by mail. You may not file Form 1040X electronically. When the form is complete, print a paper copy of it and sign where indicated. Keep a copy for your records. Mail the completed Form 1040X, along with the copy of the corrected 1099-Div, to one of the following addresses:^{[14]
X
Trustworthy Source

Internal Revenue Service
U.S. government agency in charge of managing the Federal Tax Code

Go to source}
- If you live in Florida, Louisiana, Mississippi or Texas, send it to:
  - Department of the Treasury, Internal Revenue Service, Austin, TX 73301-0052.
- If you live in Alaska, Arizona, Arkansas, California, Colorado, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Montana, Nebraska, Nevada, New Mexico, North Dakota, Ohio, Oklahoma, Oregon, South Dakota, Utah, Washington, Wisconsin, or Wyoming, send it to:
  - Department of the Treasury, Internal Revenue Service, Fresno, CA 93888-0422.
- If you live in Alabama, Connecticut, Delaware, District of Columbia, Georgia, Kentucky, Maine, Maryland, Massachusetts, Missouri, New Hampshire, New Jersey, New York, North Carolina, Pennsylvania, Rhode Island, South Carolina, Tennessee, Vermont, Virginia, or West Virginia, send it to:
  - Department of the Treasury, Internal Revenue Service, Kansas City, MO 64999-0052.
- If you live anywhere else, send it to:
  - Department of the Treasury, Internal Revenue Service,Austin, TX 73301-0215.
6
Meet the deadline. If you decide to file an amended tax return to submit the corrected 1099-Div form, you must meet whichever of the following deadlines applies to you:^{[15]
X
Trustworthy Source

Internal Revenue Service
U.S. government agency in charge of managing the Federal Tax Code

Go to source}
- If you owe an additional tax, you must file the 1040X and make your additional payment by the original tax deadline (approximately April 15).
- If you are claiming a refund, you must file the 1040X within three years of the date of your original 1040 or 1040A filling or two years after you paid the tax, whichever is later.
7
Monitor your amended filing. Beginning three weeks after you file your Form 1040X with your corrected 1040-Div, you can monitor your return online using the “Where's My Amended Return” tool. You can access this through the IRS website at https://www.irs.gov/filing/individuals/amended-returns-form-1040-x-/wheres-my-amended-return-1.
- You can also call the IRS with questions about the status of your amended return at 866-464-2050.^{[16]
  X
  Trustworthy Source
  
  Internal Revenue Service
  U.S. government agency in charge of managing the Federal Tax Code
  
  Go to source}
Advertisement

Expert Q&A

Search

Add New Question

Ask a Question

200 characters left

Include your email address to get a message when this question is answered.

Submit

Tips

Remember that a corrected 1099-Div may affect both your federal taxes as well as your state taxes.

Thanks
Helpful 0 Not Helpful 0

Warnings

You are responsible for completely and correctly reporting all of your income to the IRS and your state income tax office. Failing to receive a 1099-Div form or receiving an incorrect 1099-Div form does not relieve you of this obligation.

Thanks
Helpful 0 Not Helpful 1