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gur1
Level 2

Tax amendment issue

I have been using turbo tax for the last 6 years but this time my spouse had foreign wages. I was not sure how to handle it so I used a Tax consultant this time.

My tax consultant did a mistake and she did not add my spouse's foreign wages in 1040 but claimed a tax credit of taxes paid in a foreign country. Due to this tax refund got bumped up to 9790 when actually I should be getting 1000. I am yet to get a refund deposited in my bank account.

 

 

 I need to file an amendment and want to use Turbo tax but not sure when should I file an amendment?

 

My question is which approach is better for when to file an amendment. I am seeing issues with both 

 

Approach 1 

File amendment after incorrect refund $9790 is deposited to my account and pay back the difference to IRS ($9790 MINUS $1000)? $1000 is the correct refund amount.

 

My issue is if keep on waiting to get the refund amount of $9790 and I don’t get this refund amount $ 9790 and instead get tax notice that I filed my taxes incorrectly then will I be able to file an amendment at that time or it will lead Penalty or Interest or Audit?

 

Approach 2

File amendment before incorrect refund $9790 is deposited to my account? 

 

My issue is if I go with approach 2 and pay back IRS $9790 MINUS $1000 thinking IRS will deposit $9790 to my account as per the initial tax return. It is  possible that IRS does not pay me $9790

 

 

 

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1 Reply
rjs
Level 15
Level 15

Tax amendment issue

The tax consultant who made the mistake in your original tax return should prepare the amended return for you at no charge. The amended return uses the original return as a starting point. If the tax consultant prepares the amended return, she already has your original return in her computer. To prepare an amended return with TurboTax, you would first have to recreate your original return in TurboTax, making sure that it exactly matches the return that you filed, then amend the recreated return.


Approach 1 is the recommended approach. Approach 2 is not recommended for the reason that you mentioned. If the IRS makes any changes to your original return, and you have already filed an amended return, then you have a complicated mess that will be very difficult to straighten out.

 

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