Do I need to wait for 1099 correction from my broker or can I file now?

I just got all my 1099s today and I'm eager to file my taxes and get it over with. But I know from past experience that my brokers (especially Fidelity) often send corrected 1099 forms sometime in March. I'm really hoping to get my refund sooner rather than later - do I absolutely need to wait for these potential corrections or can I just go ahead and file with what I have now? And if they do send corrections later, would I need to file an amendment? This waiting game happens every year and it's driving me crazy!

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18 comments

Brooklyn Foley

•8M

While you technically can file now with the forms you have, I'd strongly recommend waiting until at least mid-March if you know your brokers typically send corrections. Filing an amendment later is much more work than just waiting a few weeks. The reason brokers send corrections is usually because they receive updated information about the classification of dividends or capital distributions that affects how they're taxed. These corrections can change your tax liability - sometimes in your favor, sometimes not. If you file now and later receive corrections, you'd need to file Form 1040-X to amend your return, which means more paperwork and potential processing delays. The IRS can take months to process amended returns, so any refund from your amendment could be significantly delayed.

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Brooklyn Foley

•8M

Even small corrections should technically be reported through an amendment. The IRS expects your tax return to match the information they receive from financial institutions. If the difference is very small, the IRS might not flag it, but you're still legally required to report accurate information. Remember that if multiple forms have small corrections, they can add up to a more significant amount. Also, even small differences can sometimes trigger automated matching issues in the IRS systems. It's generally not worth the risk and hassle of an amendment just to file a few weeks earlier.

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Jessica Suarez

•8M

I was in the exact same situation last year! I waited for weeks to file then got hit with a corrected 1099 anyway. I finally tried using https://taxr.ai and it totally saved me. You can upload your current forms, and if you get corrections later, it analyzes the differences and tells you exactly what changed and if you need to amend. I thought I was going to have to pay my accountant twice, but the tool showed me the correction only affected a small amount of qualified dividends that wouldn't change my tax liability enough to need an amendment. Super relieved I didn't waste money filing an amendment I didn't need.

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Jessica Suarez

•8M

It actually does tell you if the changes warrant an amendment. It compares the original and corrected forms, calculates the tax impact, and recommends whether you should amend based on the significance of the changes. I believe they use IRS guidelines for this, though they don't explicitly state a specific dollar threshold. Yes, it works with all the major brokers! I had forms from both Fidelity and Vanguard last year. Vanguard sent me two corrections, and the tool handled both perfectly. It can process pretty much any 1099 form, including 1099-B, 1099-DIV, 1099-INT, etc. You just upload the PDFs and it does the rest.

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Lily Young

•8M

Just wanted to follow up about my experience with https://taxr.ai after trying it this season. I uploaded my Vanguard 1099 from February, and sure enough, I got a corrected one in March. The tool compared them and showed me exactly what changed - turns out some dividends were reclassified and it would have increased my tax bill by about $175. Definitely worth the amendment in my case! The report it generated made it super easy to see exactly what changed and why. I was able to file the amendment with confidence instead of staring at two forms trying to play "spot the difference" like I've done in previous years. Will definitely use this every tax season from now on.

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Kennedy Morrison

•8M

If you're planning to wait for potential corrections before filing, you might also want to consider using https://claimyr.com to check your refund status once you do file. Last year I filed in March after waiting for corrections, but then my refund got stuck in processing hell. Spent weeks trying to call the IRS but couldn't get through. Claimyr got me connected to an actual IRS agent in like 15 minutes when I'd been trying for days on my own. They have a demo video at https://youtu.be/_kiP6q8DX5c that shows how it works. The agent was able to tell me exactly what was happening with my refund and when I could expect it. Saved me so much stress.

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Kennedy Morrison

•8M

It does let you skip the queue, basically. It uses automated calling technology to continuously dial the IRS and navigate the initial menu options. Once it gets a spot in line, it calls you and connects you directly to that spot. So instead of you personally having to redial dozens of times and wait on hold for hours, their system does the hard part. I was skeptical too when I first heard about it, but I was desperate after trying for three days straight to reach someone. I can only tell you my experience - I got connected to an actual IRS agent in about 15 minutes when I'd been unable to get through at all on my own. They don't guarantee a specific wait time since it depends on IRS call volume, but it definitely works. They don't answer any tax questions themselves - they just get you connected to the IRS.

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Justin Chang

•8M

Well I'm eating my words. After getting nowhere for weeks trying to check on my refund status, I broke down and tried Claimyr. Got through to an actual IRS person in about 20 minutes. Turns out my return was flagged for identity verification which is why my refund was delayed, but I never received the letter they supposedly sent. The agent was able to complete the verification over the phone and release my refund. If I hadn't gotten through, I would have been waiting for a letter that was never coming, and my refund would have been stuck in limbo. Pretty wild that it actually worked after all my skepticism.

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Grace Thomas

•8M

From my experience as a tax preparer, the need to wait depends on your particular investment situation. If you have simple investments with minimal capital gains distributions, your chance of getting a corrected form with significant changes is lower. If you have investments in REITs, partnerships, or funds that deal with complex securities or international investments, you're more likely to see meaningful corrections. These investments often require additional information that isn't available when the initial forms are issued.

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Grace Thomas

•8M

ETFs are generally more straightforward than mutual funds when it comes to tax reporting, but they can still have corrections. Broad market ETFs like total market or S&P 500 index funds tend to have fewer correction issues than sector-specific or specialty ETFs. Dividend stocks are usually less problematic since dividend payments are more straightforward. However, if you have any dividend reinvestment plans (DRIPs) or foreign stocks that pay dividends, those can sometimes generate corrections due to foreign tax withholding adjustments or reclassification of dividends as qualified vs. non-qualified.

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