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February 23, 2025
Question

Amend 1040How do I amend a 1040?Should my taxes on shorted stocks that pay a dividend as an interest equate to increase in taxes on dividend?

  • February 23, 2025
  • 1 reply
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Dividends paid to me but paid out to buyer of shorted stock should equal out?

    1 reply

    February 25, 2025

    If you want to make changes or add a document to a tax return that has already been filed and accepted by the taxing agency, you should follow these guidelines. 

     

    • You must first wait until the initial return is completely processed.
    • You will have to use the same TurboTax account that you used for the original tax return.
    • Once you begin your amendment, you'll see your original return.
    • The refund calculator will start new at $0 and only reflect the changes in the refund or tax due
    • Only make changes to the areas of your return that need to be corrected.
    • You have three years from the date you filed your return or two years after you paid the tax due (whichever is later) to file an amendment

    Select your product below and follow the instructions. 

    Amend TurboTax Online 

    Amend TurboTax CD/Download 

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    Lava24Author
    February 25, 2025

    What about the second part of my question?  Since the interest expense will equal the dividends lost on the short sale, will the taxes wash out?

     

    fanfare
    Employee
    February 25, 2025

    the dividends you pay out on short shares is the cost of doing business as a short-seller.

    If there is interest, that depends on your broker.  and is not related to dividends.

     

    @Lava24