Forgot to include 1099-R (Code G direct rollover, Taxable amount $0.00) in the returns. Do I have to amend the returns? If yes, should I amend the State returns as well?

[RCK]

I have submitted the returns and all returns are currently in the 'Accepted' status. (Federal, CT, MA). Now I realized that I should've ideally included 1099-R (Direct rollover, Code G, taxable amount $0.00). I am wondering whether I should amend the returns for this 'report only' event. Also, should amend the returns for both the states too?

Thanks for your help!

[MichaelL1 · Accepted solution]

Amend the Federal return and then the states start with the federal AGI which will not change, so no need to Amend the state returns.

The Amended return process in TurboTax is expected to be ready on March 7th.

[RCK]

Thank you! I have some follow up questions:
(1) Can I start the amendment immediately when it is available on TurboTax or should I wait till the refund is done?
(2) Is there a separate fee for amending the return on TurboTax?
(3) While preparing the return for this year, I was asked a question whether I would want to Amend last years return. Can I amend this years return along with next year filing? Is it recommended?

[MichaelL1]

1)  need to wait until March 7th or you get refund whichever is later.

2) No additional fee

3) This 1099R would Amend the 2018 return.

4) When you Amend this return you will then use the Amended return as starting point next year, but if you are asking about 2017, not sure why you would Amend that return as this issue has no impact on it.

[RCK]

I am sorry if I was not clear. Is there an option to amend the 2018 return along with 2019 return next year; if yes, is that recommended in my scenario. Or better go ahead and do it now itself.

[MichaelL1]

My mis-understanding.  The online each year is only for the current year being worked on.  So it is much easier to Amend now (or within next few weeks) otherwise you actually have to download software to computer to do it (which is still free).

[RCK]

Thanks for all your answers! I appreciate it a ton! 🙂

[RCK]

Update:

I received both my Federal and State refunds and it has been more than a week now. But for some reason TurboTax is still showing the status as 'Accepted' without any signs of me getting the refund. But anyways, as suggested above, I started the process to amend but then TurboTax is showing a message "If you put money into a retirement account, such as a 401(k), without taking any money out, you don't need to go through this area." (Screenshot attached to the original post) Thoroughly confused!

Questions:
1. This message is contradicting with the suggestions above. I also found some other responses in the same tone (<a rel="nofollow" target="_blank" href="https://is.gd/Yv0l6k">https://is.gd/Yv0l6k</a>, <a rel="nofollow" target="_blank" href="https://is.gd/orUIGy">https://is.gd/orUIGy</a>) of the message. So, if you are my tax guy, what will you ask me to do? To amend or to wait (till IRS sends something). 🙂
2. If the answer above is to file the amendment, when? Do I have to further wait till the TurboTax status changes to something else? When I start the amendment process now, it is resetting the return to zero, which is not correct since I already got the refund. Basically, I don't want the TurboTax tax records to be modified under the assumption that I didn't get the refund.

Thanks for your help!

[MichaelL1]

I would Amend and while the tax will be zero, if IRS does send a letter it might be a year from now.  While you can do it in about 5 minutes now and be done with it.

[VolvoGirl]

Turbo Tax will always say Accepted.  Then they are done with their part.  The IRS doesn't update or tell Turbo Tax when they approve or send your refund.  

[RCK]

Thanks! I completed the amendment and saved the PDF but two unexpected things happen:
1. Unlike you said, TurboTax printout amended returns for both the states too, not just the federal. Now should I amend States too?
2. Do I have to send just 1040X and 1040 only or the whole set of documents (Schedule 1, 3, B, D), Form 8949 (Some 85 pages).

[MichaelL1]

It should be the 1040X with a corrected 1040 (and accompanying tax forms) attached, and if 85 pages if needed.  No worksheets.  

[ShenellB]

Hello,

Does this advice still apply to 2022 returns? I just realized I’d forgotten to include my 1099R (Distribution G, $0 Taxable). My return was just accepted today by both federal and state. Am I to wait for receipt of the refund before filing the amendment?

Thanks,

Shenell B

[RobertB4444]

Yes, you should always wait to have the IRS completely process your return before filing an amendment.  They may fix your error for you so that you have no need to file the amendment.

@ShenellB 

[drad0001]

Hello @RobertB4444 

Sorry If I piggyback ride on this post but I have a similar situation (Forgot to include 1099R in my 2022 return, with distribution G, $0 taxable as I rolled everything over).  I filed my returns in February. Is there a way to know if the IRS already fixed the error for me so I don't need to file the amendment? I live abroad now and if I can avoid having to do that, it would be great. 

Thanks!