Forms 1099-INT and 1099-DIV - Errors That Could Prompt a Notice
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There are many reasons you could have received a notice regarding your Form(s) 1099-INT and/or Form 1099-DIV. The most common reasons are listed below:
The form was never entered into the TaxACT program and the income was not reported elsewhere on the return.
According to the IRS instructions, the payer is only required to send you a Form 1099-INT or Form 1099-DIV if the interest or dividend income exceeds $10; however, you are responsible for reporting ALL interest and dividend income, regardless of the amount.
Entry error:
Example of a transposed number: The number that should have been entered was $21,123; instead the user entered $12,123. This would have caused a difference of $9,000 in underreported taxable income.
Example of an omitted number: The number that should have been entered was $21,123; instead the user entered $2,123. This would have caused a difference of $19,000 in underreported taxable income.
The form imported from a previous year’s tax return, but only the payer’s information was transferred. The user did not enter the information for the current tax year.
You entered the interest and/or dividend income, but indicated the amount was federal and/or state exempt.
To review and/or modify your entries for Form 1099-INT Interest Income:
From within your TaxACT return (Online or Desktop), click on the Federal Q&A tab
Click Investment Income to expand the category and then click Interest Income
Click Add to create a new copy of the form or click Review to review a form already created
Click Quick Entry or Step-by-Step Guidance
If you select Quick Entry, fill in the form to match your paper copy of Form 1099-INT and be sure to scroll down to answer questions.
If you select Step-by-Step Guidance, the program will proceed with the interview questions for you to enter or review the appropriate information.
To review and/or modify your entries for Form 1099-DIV Dividends and Distributions:
From within your TaxACT return (Online or Desktop), click on the Federal Q&A tab
Click Investment Income to expand the category and then click Dividend Income (Form 1099-DIV)
Click Add to create a new copy of the form or click Review to review a form already created
Click Quick Entry or Step-by-Step Guidance
If you select Quick Entry, fill in the form to match your paper copy of Form 1099-DIV and be sure to scroll down to answer questions.
If you select Step-by-Step Guidance, the program will proceed with the interview questions for you to enter or review the appropriate information.