I received a letter from the IRS because I neglected to report one of my W-2 from 2018.

[koyangfu]

I received a letter from the IRS because I neglected to report one of my W-2s from 2018.  Totally my mistake, and I responded to the letter agreeing with the amount they had on the letter. The IRS is now in the process of amending my 2018 tax return (instructions on the letter).  I have 2 questions:

1. Should I file my 2019 tax return as is now, and amend it after I hear from the IRS on any amendments from 2018?  Or do I have to wait (file an extension) for response from the IRS?

2. Do I need to go back and amend my 2018 state return

[MinhT1]

1. You can go ahead now and file your 2019 federal return, as the adjustments made for 2018 would not affect your 2019 tax return.

2. You should now reflect your 2018 state return to add the missing W-2.

[koyangfu]

Thank you very much.  Just to clarify on 2: I should go back to amend my 2018 State return by adding the W-2, correct?  I used TurboTax in 2018 as well.  I remember I entered the W-2 info in the Federal section.  Will it let me only amend the State section when adding the W-2?  I don't want to mess with the Federal section since the IRS said they are making the necessary changes.  Thank you again.

[KurtL1]

If you failed to include one of your W-2's on your 2018 return you will need to amend both the federal and the state returns. The W-2 information will affect both the returns. You will be printing off each of them and mailing them both in.

If the IRS has not yet contacted you about your missing W-2, the will be in the future. If you owe taxes because of the new W-2, paying it now will reduce any penalty and interest you might have.

[koyangfu]

Thank you - I have in fact already received the letter from the IRS.  The instructions on the letter indicated that they will amend my Federal return, but the state return is my responsibility.  My question now is whether I will be able to enter my W-2 in TurboTax and only amend and send in the State return for 2018?

[JamesG1]

The process of amending your 2018 tax return will first correct the Federal tax return. Then the information will flow to the state tax return.

You will only have to mail in the state tax return and not the Federal since the IRS will amend the Federal tax return for you.