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 $162. I went to file an amended return but do not know how to show the reduced value for the qualified dividends on the amended return. Any help would be appreciated.
A change in qualified dividends doesn't show up directly on the amended return (lines 1-5 are unchanged), only as a change to the total tax. Use the same capital gains worksheet you used to prepare the original return to recalculate the tax using the new qualified dividend amount, and show this changed amount of tax on the amendment.
Form 1040X Line 6 should show method "QDCGTW" (qualified dividends capital gains tax worksheet) as the method used to recalculate the tax.
Use the "explanation" section of Form 1040X to briefly indicate why the tax changed.
-Mark Bole
For such an inconsequential amount, I would do nothing. In fact I wouldnt even amend for a client whose return I had prepared. IRS has a certain tolerance level (not published), and such an amount is well within those tolerances.
ChEAr$, Harlan Lunsford, EA n LA
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