2021 tax return amendment timing with 2022 extension filing deadline

[RReuben]

I have to file a 2021 tax return amendment due to excess 401K contribution in 2021 brought on inadvertently when switching employers. Is there any relationship/requirement or perhaps recommendations between the timing of filing the 2021 amended return and the extended 2022 tax return? 

Thanks.

[JBedford · Accepted solution]

Hi, @RReuben , thanks for the question! I would do the amendment first if possible, just in case it affects the 2022 return in some way. But if doing so would prevent you from filing 2022 on time, then I would prioritize that over the amendment. Hope this helps, please let me know if not! 

[RReuben]

Thanks @JBedford .

A couple follow up questions:

In what situation can a small amount of 2021 excess 401K contribution affect a 2022 return? I ran through TurboTax's guidance for my 2022 tax return and didn't spot anything, hence now wondering if I likely missed something common.

I have the amendment forms ready to go out in the mail but I understand the IRS will likely take several months to process it.  In this scenario, would it matter if I sent in a check for the taxes owed or would I be better off from a timing point of view making the 2021 amendment tax payment on IRS Direct Pay & California FTB Web Pay websites before I pay the taxes I owe with my 2022 extension?

Thanks.

[JBedford · Accepted solution]

Hi, @RReuben , thanks for the questions! Honestly, it's very unlikely that the amendment will affect this year's return, which is why I said to go ahead and file if you can't get the amendment filed. There's certainly no way the amendment will be processed by the extended deadline though, as you said. My advice was based on the fact that it's just generally advisable to deal with "older" returns before "newer" ones, just in case. 

I don't know that the method of payment makes much of a difference one way or another. Again, as a general rule, I usually advise paying online for convenience and quickness. Hope this helps!