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
