should i amend my return if got letter correctly stating I owed more

[SOFTCLAY]

Hello. I received a letter from the IRS that I had made a mistake on my return and now owed more taxes. After looking I think they are correct. I can go to their website and pay the amount, but I'm wondering if I should edit my 2021 return and do an amended return first, or not. I have used TT Premier for years (CD version) and every year it imports the previous year's return. how will that be handled if I just pay it? 

second question is if I should do an amended state return? would it impact that (MASS.) if I actually ended up paying more taxes than thought previously? 

[NCperson · Accepted solution]

@SOFTCLAY -as the IRS has already adjusted your tax return, there is NO NEED TO AMEND.  just go to the website and pay what you owe as you suggested.

On the state tax form, it really depends what the federal changes were.  For most all people that post on these boards, the error relates to the Recovery Rebate Credit (stimulus) or the CHild Tax Credit.  if that is why the IRS adjusted your return, those are federal credits and will have no impact on the state return.

what is the reason the IRS adjusted your return, that may impact my repsonse on the import when you get to 2022 tax return. 

If the IRS adjustment had to do with your Adjusted Gross Income, then it's likely there is a state change required as well. 

[SOFTCLAY]

Thank you for the perfect response. Yes mine was due to the child tax credit thing. 

If I just pay it will that impact next year's taxes when I import it? Isn't agi impacted by credits? 

Thanks!

[NCperson]

@SOFTCLAY - AGI is not impacted by the credits, so it won't impact the state return

If it were me, I would just pay what I owed and nothing more; the stuff that is imported as the basis of next year's return is not impacted by the child tax credit adjustment

[SOFTCLAY]

Excellent. Thank you so much.