I already e-filed, and will get a large refund (several thousand). Then I discovered that I forgot to enter a 1099-INT. It is a very small portion of my tax, it increases taxes (reduces refund) by about $300.
What should I do? Will IRS discover the error and simply reduce my refund? That would be ideal. I'm not worried about an audit, my income and taxes are straightforward.
OR should I file an amended return with a $300 check?
Thanks!
The IRS may or may not find the mistake since they get copies of all 1099 forms. You should file an amended return if the IRS does not catch the error, you can wait until the IRS fully processes your return. Any tax due with the amended return should be included. An amended return must be mailed. Since any tax due should be paid by April 15, 2019 to avoid a penalty & interest, you might want to mail your amended return in & pay the Federal tax due on the IRS website.
If you have a State due you can check your states website to pay online.
How do I amend a 2018 return in TurboTax?
If really is a 50/50 gamble. Normally the IRS states that you should wait until your original return is fully processed (receive the refund or payment went through for taxes owed) before you amend your return. The problem you have is that you would owe on the amended return & taxes owed must be paid by April 15, 2019 to avoid interest & a penalty.
In reality you should wait until you amend your return because the IRS may catch the error. If they don't catch the error there will be a penalty & interest on the $300. The following has information on what the penalty & interest would be.
https://www.irs.gov/businesses/small-businesses-self-employed/understanding-penalties-and-interest
The other thing you can do is call the IRS & see if they have processed your return, they can tell you if they caught the 1099-INT
the following will help you get to a real person with the IRS:
The IRS telephone number is 1-800-829-1040, and they are available from 7 a.m. – 7 p.m. Monday thru Friday. The best time to call is early in the morning.
- The first question the automated system will ask you is to choose your language.
- Once you’ve set your language, do NOT choose Option 1 (regarding refund info). Choose option 2 for “Personal Income Tax” instead.
- Next, press 1 for “form, tax history, or payment”.
- Next, press 3 “for all other questions.”
-Next, press 2 “for all other questions.”
- When the system asks you to enter your SSN or EIN to access your account information, do NOT enter anything.
-After it asks twice, you will be prompted with another menu.
-Finally, press 2 for personal or individual tax questions. The system should then transfer you to an agent.
The IRS may or may not find the mistake since they get copies of all 1099 forms. You should file an amended return if the IRS does not catch the error, you can wait until the IRS fully processes your return. Any tax due with the amended return should be included. An amended return must be mailed. Since any tax due should be paid by April 15, 2019 to avoid a penalty & interest, you might want to mail your amended return in & pay the Federal tax due on the IRS website.
If you have a State due you can check your states website to pay online.
How do I amend a 2018 return in TurboTax?
Have you actually e-filed your return? Did you hit the Transmit/Submit button? (or Did you Print and Mail your return?)
If so, You need to WAIT until you find out if your return has been REJECTED or ACCEPTED.
Then it is BEST if you wait until you actually receive the refund (or payment due is taken from your account) based on your already filed return; then you can start the amendment process
If it has been rejected then you can simply make the corrections required to fix the rejection AND at the same time add the new information, and re-submit your CORRECTED e-filed return.
If it has been accepted you will have to prepare and mail an amended return ---BUT WAIT until you receive your refund before filing the amended return.
A Form 1040-X amended return MUST be PRINTED and MAILED; and usually takes 3-4 months to be processed.
Perhaps some terminology/definitions would be in order:
AMEND:- your return is what you do AFTER your return has been filed and accepted by the IRS and/or state. (No additional charge)
CHANGE:- your return is what you do BEFORE your return has been filed --simply go back to the respective information and change it as needed.
CORRECT:- your return is what you do AFTER you attempted to file your return and it is rejected by either IRS, or state --again, simply go back to the respective information and change it as needed.
Above all DO NOT DO ANYTHING until you find out if your return is rejected or accepted
NOTE: When mailing a printed return it is always a good idea to go to the Post Office and mail it 'Certified' with 'Return Receipt'. That way you will have proof that they received it and when it was received.
It has been filed and ACCEPTED.
Let me repeat the situation again:
1. on 4/12, 1040 was filed and accepted by IRS; refund = $5000
2. on 4/14 I discovered additional income (1099INT) that I overlooked previously. The extra tax on this is $300.
QUESTIONS:
1. why wait for the refund before filing 1040X? Is there a high chance that my refund will actually be 5000-300=$4700, meaning they will automatically add the missing 1099INT?
2. If they don't do this automatically and send me $5000, won't I owe interest / penalty on $300?
2. maybe I should PAY $300 today (4/15) but wait to FILE the amended return until I get the refund? But what if they refund $5300 because they didn't match the extra income?
If really is a 50/50 gamble. Normally the IRS states that you should wait until your original return is fully processed (receive the refund or payment went through for taxes owed) before you amend your return. The problem you have is that you would owe on the amended return & taxes owed must be paid by April 15, 2019 to avoid interest & a penalty.
In reality you should wait until you amend your return because the IRS may catch the error. If they don't catch the error there will be a penalty & interest on the $300. The following has information on what the penalty & interest would be.
https://www.irs.gov/businesses/small-businesses-self-employed/understanding-penalties-and-interest
The other thing you can do is call the IRS & see if they have processed your return, they can tell you if they caught the 1099-INT
the following will help you get to a real person with the IRS:
The IRS telephone number is 1-800-829-1040, and they are available from 7 a.m. – 7 p.m. Monday thru Friday. The best time to call is early in the morning.
- The first question the automated system will ask you is to choose your language.
- Once you’ve set your language, do NOT choose Option 1 (regarding refund info). Choose option 2 for “Personal Income Tax” instead.
- Next, press 1 for “form, tax history, or payment”.
- Next, press 3 “for all other questions.”
-Next, press 2 “for all other questions.”
- When the system asks you to enter your SSN or EIN to access your account information, do NOT enter anything.
-After it asks twice, you will be prompted with another menu.
-Finally, press 2 for personal or individual tax questions. The system should then transfer you to an agent.
I FORGOT TO ENTER MY 1099-INT, WHAT SHOULD I DO NOW, I FILED MY RETURNS TODAY
Please see @bluedeb's post above. If your tax return is rejected then you'll be able to make corrections and resend it but if it is approved you'll need to amend your return.
How do I amend my 2019 TurboTax Online return? - Community
Edited 02/29/20
I have read through this whole thread because today I got my bank interest for $100.00 I did not report, because when I checked there was none. I filed on 1/27 and today is 2/1. It is currently accepted and in processing. Being a 50/50 chance they don't catch it and I get my return as is, I will do an amendment. How do I figure out the taxes owed on it to send a check with it? I had turbo tax do my taxes to figure these things out, I have no idea what to owe on it like the original question.
Can I do the amendment through turbo tax and it tell me? I feel kind of stuck right now and wanna be prepared. In all reality I need my return asap because I am broke and since it was accepted does that mean they will catch it?
Thanks!
You can do an amendment through TurboTax. The program will tell you how much you will owe when you amend your return.
If your return was accepted, the IRS won’t send it back so you will have to amend your tax return.
Adding $100 should not be much of an extra tax. The maximum tax rate is 37% or $37 dollars, but you’ll probably owe a lot less.
Thank you! I know a couple years ago I forgot the marketplace form and got a letter in the mail asking for it, it totally delayed the process and stayed in review for a bit longer than I liked. However that was a lot more than $100, I am assuming they will let it go and I file the amendment and pay the tax on $100 bucks.
Hello, when you replied that the IRS won't send it back, do you mean the tax return itself? I am in the same boat. IRS accepted my return, but my return has not been sent to me. Should I file the amendment now or wait until I receive the return and/or letter from IRS? I have not issue sending in the amended return now.
You should amend your return now to take care of the income that wasn't reported.
The IRS will eventually contact you about the missing unreported income at some point in time. That could happen in a few weeks or even sometime this summer. But they will contact you if their records do not match what you reported.