You said: "We've been doing it like that cause we get a better return." So that means you tried it different ways first, and then decided on a course of action.
Please consider using a CPA (Certified Public Accountant) or EA (Enrolled Agent) rather than a seasonal storefront preparer like H&R Block to help you amend, etc. You need someone who can negotiate with the IRS and State on your behalf, since the interest and penalties could become high.
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https://www.irs.gov/tax-professionals/understanding-tax-return-preparer-credentials-and-qualificatio...>
