I filed my 2023 taxes already, and am now contributing to my 2023 IRA. However, I discovered an error that will result in an increased income by $100 (related to an IRA promotion that was withdrawn during conversion), leading to $24 in additional taxes. I have the federal amendment form ready and wanted to confirm the following:
1.Since my AGI increased by $100 and I now owe $24 in taxes, I assume only the federal amendment is required. Is that correct? Can I skip sending the state amendment since it didn't result in any changes to my liability?
2.I am supposed to include a $24 payment that I owe with the amendment. However, I don't have checks. Can I electronically pay it and attach a receipt or use any other alternative method?
If the $100 change in income did not affect your state tax you can skip filing the state amendment.
You can pay the $24 online. I recommend you file the amended return and wait for it to be processed before making the online payment. That way the amount to will be listed on the IRS website and will ensure it is properly applied. You also have the option of purchasing a money order to mail with the amended return. Money Orders are available at the post office. You would need to pay with cash.
What do you mean by "change of income"? It increased my gross income by $100 and added $24 tax, so the tax bracket and everything else remain the same, I just owe more Federal.
You're suggesting filing without any payment, how would i make the connection between the payment and when the amendment is processed?
I mean if the $100 increase in income did not change the amount of state tax you owe, you don't need to file an amended state tax return. Once the federal amendment is processed, the IRS will send you a letter notifying you whether or not your amendment was accepted (it will be). Along with that notification they will send a bill for the additional payment due. You can check on the status of an amended return by going to Where's My Amended Return?
Correct, it did not cause any tax liability the only reason why I'm hesitating is that after all it increased the gross which is used for state data. I'm just concerned I'm going to end up the year with two different numbers in each entity.