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Question Re; Qualified Dividends and Amended Reutrn

 

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Question Re; Qualified Dividends and Amended Reutrn prdevoe 03-04-2008
Posted by prdevoe on March 4, 2008, 1:08 am
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I had already filed my 2007 taxes when I received a corrected 1099-DIV
form indicating my previous qualified dividend value was wrong - the
corrected value reduced by qualified dividends by $162. I went to
file an amended return but do not know how to show the reduced value
for the qualified dividends on the amended return. Any help would be
appreciated.

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Posted by Mark Bole on March 4, 2008, 10:55 am
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prdevoe wrote:
> I had already filed my 2007 taxes when I received a corrected 1099-DIV
> form indicating my previous qualified dividend value was wrong - the
> corrected value reduced by qualified dividends by $162. I went to
> file an amended return but do not know how to show the reduced value
> for the qualified dividends on the amended return. Any help would be
> appreciated.
>

A change in qualified dividends doesn't show up directly on the amended
return (lines 1-5 are unchanged), only as a change to the total tax.
Use the same capital gains worksheet you used to prepare the original
return to recalculate the tax using the new qualified dividend amount,
and show this changed amount of tax on the amendment.

Form 1040X Line 6 should show method "QDCGTW" (qualified dividends
capital gains tax worksheet) as the method used to recalculate the tax.

Use the "explanation" section of Form 1040X to briefly indicate why the
tax changed.

-Mark Bole

--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>

Posted by Harlan Lunsford on March 4, 2008, 6:41 pm
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prdevoe wrote:
> I had already filed my 2007 taxes when I received a corrected 1099-DIV
> form indicating my previous qualified dividend value was wrong - the
> corrected value reduced by qualified dividends by $162. I went to
> file an amended return but do not know how to show the reduced value
> for the qualified dividends on the amended return. Any help would be
> appreciated.
>
For such an inconsequential amount, I would do nothing. In fact I
wouldnt even amend for a client whose return I had prepared. IRS has a
certain tolerance level (not published), and such an amount is well
within those tolerances.

ChEAr$,
Harlan Lunsford, EA n LA

--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>

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