Forms 1099-INT and 1099-DIV - Errors That Could Prompt a Notice
1
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 tab. On smaller devices, click the menu icon in the upper left-hand corner, then select Federal
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 tab. On smaller devices, click the menu icon in the upper left-hand corner, then select Federal
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.