I got a corrected 1099 from etrade today. They suggest I speak to my tax professional about it if I have already filed. They don't say if they will pay for the expense. (just kidding...)
Although dividends has stayed the same, qualified dividends has gone up. Presumably that means I paid too much tax and the IRS won't care if I ignore it?
"Wade Lippman" wrote
If ordinary dividends stayed the same, then yes, you paid a bit too much.
Maybe later in life - like May or June - work up an amended return to see what difference it makes.
If it's worth it, send it in.
What's with all these corrected brokerage 1099's? I have gotten them for several years now, from Oppenheimer and Etrade both. Not a year has gone by in 5 yrs that I haven't gotten one, AFTER I've gotten taxes done. 2 years ago I got TWO from one firm. Why can't they get it right the first time? There should be a law that brokerages have to cover the extra cost after February 1st. Last year I ignored one because it came in April and was in my favor, but would have cost me more (in time & money) to amend than I would have gained by amending. I'm certain that the IRS is not going to contact us to file an amendment if we are owed money. SandyBeth
The ones that I have received are usually because a mutual fund has not sent (or sent late) the correct information to the broker. This has happened to me so often, particularly for funds with foreign investments, that I don't file until after April 10 (I mailed my returns today) in hope that I will get the corrections before filing (it doesn't always work that way - I have received a corrected 1099 in June).
I do the same thing for the same reason. My taxes are done but I will wait to mail them till this weekend for the same reason. However a corrected 1099 in June is ridiculous!
Jeff
"sandybeth" wrote
They can't "get it right" because of the investments you hold. Mutual fulds that invest in such a wide variety of things, and buy and sell at super-sonic speed, that it takes a while before THEY get the straight reporting from the entities they invested in that they aren't getting the straight dope till mid March at times.
This all has to do with the taxing of "qualified" dividends at a different rate than ordinary dividends. When the next administration gets into office, you might see a change in this area, maybe for the worse (as in higher taxes).
And that fee will come straight off your return on investment. Fine with you now?
They are required by law to issue 1099's by the end of January. They are also required by law to issue corrected statements whenever they find an error in reporting. It's not the fault of the investment brokerages that you filed early.
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