@DawnC
I noticed you suggested that for those that will need to amend their 2020 return, its best to wait until the 1099-R is provided early next year.
"If you have already filed the 2020 return, then you should wait and amend when you receive the form next year."
I've already filed my 2020 federal / state returns and both were accepted. I'll need to amend my 2020 federal to account for the earnings gained from excess contributions that were returned in Jan 2021 for 2020 tax year.
While my IRA custodian did provide my 1099-R info in a custom doc that I requested (includes payer info, box 1, 2a, 7 info), I'm evaluating the pros / cons of filing now vs waiting until next year. I'm interested to know what factors you looked at when making the suggestion.
Amend now
- Ability to e-file, which is much faster (pro)
- Pay taxes & penalties immediately to get it over with (pro)
- 1099-R doc is not available yet. Must use IRA custodian provided info, which leaves room for error that could lead to me having to amend again (con)
Amend next year
- E-file option may not be available; would have to mail, which takes longer up to 16 weeks (con). Further amendments could push that out even further.
- Waiting to pay taxes & penalties (con)
- 1099-R will be available with official info (pro)
- Are there any penalties for waiting?
Any insight to make the decision easier would be appreciated. Thank you!
