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There are many reasons you could have received a notice regarding your Form 1099-INT Interest Income and/or Form 1099-DIV Dividends and Distributions . 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:

  1. From within your TaxAct return (Online or Desktop), click Federal. On smaller devices, click in the upper left-hand corner, then click Federal.
  2. Click Investment Income in the Federal Quick Q&A Topics menu to expand, then click Interest income (Form 1099-INT).
  3. Click + Add Form 1099-INT to create a new copy of the form or click Edit to review a form already created.
  4. Click Quick Entry to scroll down to answer all applicable questions to match your paper copy of Form 1099-INT; or click Step-by-Step Guidance to proceed with the program interview questions.

To review and/or modify your entries for Form 1099-DIV:

  1. From within your TaxAct return (Online or Desktop), click Federal. On smaller devices, click in the upper left-hand corner, then click Federal.
  2. Click Investment Income in the Federal Quick Q&A Topics menu to expand, then click Dividend income (Form 1099-DIV).
  3. Click + Add Form 1099-DIV to create a new copy of the form or click Edit to review a form already created.
  4. Click Quick Entry to scroll down to answer all applicable questions to match your paper copy of Form 1099-DIV; or click Step-by-Step Guidance to proceed with the program interview questions.

Related Links

Note that any link in the information above is updated each year automatically and will take you to the most recent version of the document at the time it is accessed.


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