Third Stimulus Payment

[Charlotte7598]

I'm planning on asking for the First Time Penalty Abate Waiver when I file my amended return, and I know you must have had no penalties on the prior three returns to qualify. On my 2020 return, I notice that I had $171 of "form 2210 tax liability" but no underpayment penalty it looks like, so I hope that doesn't count? I honestly have no idea why I even had that liability because I never have before looking at my other returns.

Also for some reason I saw on my 2020 return I had a $15 retirement savings contribution credit that I'm certain I didn't qualify for, and don't even remember trying to claim it because I'm just now finding out about it.

Hopefully neither of those things would disqualify me from the first time abate Waiver would it? And the nonrefundable retirement credit likely wouldn't have changed anything on my return tax liability wise, so would that be worth amending? I don't even remember claiming it...

[DawnC]

The retirement savings credit was automatic if you entered any 401k contributions from your W-2.   So, if you have ever had a 401K at work, it would be completely normal to take that credit and not notice.   It is also normal to have a tax liability - since you had no underpayment penalty, you should have no problem using the First Time Penalty Abatement Waiver.  

[Charlotte7598]

That's very strange because I didn't have a retirement plan with any of my employers that year. My aunt made small Roth IRA contributions on my behalf, but I didn't even report those, according to my IRA contributions worksheet (should I have?)

But I do see as a dependent and full time student, I wouldn't have qualified for that credit so I don't know if any action is needed.

[fanfare]

@AmyC 

"The IRS is running about 4 years behind right now. "

where do you get this tidbit of information?

That's not what IRS says on IRS.gov .

[Charlotte7598]

I'm a little curious where that info comes from myself...but then what DOES the IRS say on their website, fanfare? I'd be interested to see.

Frankly, for a mistake of the caliber that I BELIEVE to have been made, I'm rather surprised I haven't received a letter yet. A good friend of mine made a similar error but said he got a letter by May the same year.

[fanfare]

It seems every post you list another error on your tax return.

So which is the "big one" you think should have been found by IRS by now.?

IRS says: ignore penalties (original or newly expected) when you amend.

IRS will calculate any penalty and send you a bill.

@Charlotte7598 

[Charlotte7598]

@fanfare Well I was talking about the stimulus check when I said that, but there are other credits and deductions I got that I would not have been qualified for based on my could-be dependency status. It's a lot of money if interest/penalties are tacked on, so it's been making me anxious and just not super happy, so I apologize. But it is what it is now and it'll be dealt with.

Anyway, thanks for the help everyone! I really appreciate it.