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Amending Fed Tax Return - How?
Old 04-06-2011, 02:35 PM   #1
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Amending Fed Tax Return - How?

I overstated my State tax witholding when I prepared my tax returns which resulted in higher Fed and State tax refunds. I already received my Fed tax refund directly deposited into my checking account. The reason I found out about my mistake was my CA tax return was automatically corrected by the FTB, they caught my mistake and sent me a corrected State tax refund. I am surprised that the IRS did not catch the mistake (I thought they automatically matched the W2 numbers reported by the employer to the numbers stated on the return). Now I need to amend my Fed Tax return.

I believe that the amended return can only be submitted through the mail.

I believe I need to send in a check because my tax refund was overstated by my mistake and now I own the IRS the difference, what do I need to write on my check?

Do I owe any interest to the IRS because I received more refund than I should?

I have not tried to amend my return through Turbotax yet but wonder if anybody has done this before and what the procedure is.


Thanks,

mP
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Old 04-06-2011, 03:07 PM   #2
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What really interest me is your thought process. What was it in this instance?

You post your questions before using TurboTax? I could understand posting a question after using TurboTax or using its help function or searching it for information about amended returns and not understanding something.
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Old 04-06-2011, 03:12 PM   #3
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Just follow the instructions from the IRS. They are pretty simple.

Topic 308 Amended Returns
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Old 04-06-2011, 03:12 PM   #4
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Maybe the mistake didn't change the amount of the federal refund? Try running it through TurboTax and see what the difference is?
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Old 04-06-2011, 05:57 PM   #5
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Quote:
Originally Posted by dex View Post
What really interest me is your thought process. What was it in this instance?

You post your questions before using TurboTax? I could understand posting a question after using TurboTax or using its help function or searching it for information about amended returns and not understanding something.
Hi Dex, I did use Turbo Tax (online edition), sorry for not being clear in my earlier post. Turbo Tax does have a section for amending tax returns, I was just trying to find out from those that may have gone through the same situation and learn from them.

I picked up box 18 on my W2 which is "Local wages, tips, etc." instead of box 17 which is strictly State Income Tax, I overstated my witholding by about $6,500. Just wonder if there will be interest penalty when I write a check to reimburse the IRS for receiving excessive refund.

Thanks for all the suggestions.

mP
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Old 04-06-2011, 06:14 PM   #6
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I went through this a couple of years ago. I did the amendment in TurboTax and printed it out, and mailed it. I enclosed the amount that was owed, ignoring interest.

A few weeks later the IRS sent a bill for the interest, which they calculated. I mailed them a check the same day. And that was the end of that.

There is interest charged if the payment is late. It didn't seem usurious.

Hope this helps!
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Old 04-06-2011, 07:28 PM   #7
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I went through this a couple of years ago. I did the amendment in TurboTax and printed it out, and mailed it. I enclosed the amount that was owed, ignoring interest.

A few weeks later the IRS sent a bill for the interest, which they calculated. I mailed them a check the same day. And that was the end of that.

There is interest charged if the payment is late. It didn't seem usurious.

Hope this helps!
Thanks W2R, just finished my amended return, will be mailing out a check and the 1040X tomorrow or Friday. Will wait for the IRS to calculate the interest penalty and mail another check later.

Meanwhile they never paid me any interest on the amount that they refunded me??
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Old 04-06-2011, 08:31 PM   #8
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Quote:
Originally Posted by Disappointed View Post
Hi Dex, I did use Turbo Tax (online edition), sorry for not being clear in my earlier post. Turbo Tax does have a section for amending tax returns, I was just trying to find out from those that may have gone through the same situation and learn from them.

I picked up box 18 on my W2 which is "Local wages, tips, etc." instead of box 17 which is strictly State Income Tax, I overstated my witholding by about $6,500. Just wonder if there will be interest penalty when I write a check to reimburse the IRS for receiving excessive refund.

Thanks for all the suggestions.

mP
Thanks,

I don't think you will owe interest or a penalty because you are sending them a check before April 18.
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Old 04-07-2011, 02:20 AM   #9
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Meanwhile they never paid me any interest on the amount that they refunded me??
But, but.., that was your mistake as well, wasn't it? I assume you withheld too much or paid too much in estimated payments.
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Old 04-07-2011, 09:24 AM   #10
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But, but.., that was your mistake as well, wasn't it? I assume you withheld too much or paid too much in estimated payments.
Alan, you are right again, I should have paid less so I owe the IRS instead of getting a refund. BTW, I wonder what interest rate are they using to calculate the penalty.
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Old 04-07-2011, 09:34 AM   #11
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Thanks W2R, just finished my amended return, will be mailing out a check and the 1040X tomorrow or Friday. Will wait for the IRS to calculate the interest penalty and mail another check later.

Meanwhile they never paid me any interest on the amount that they refunded me??

They actually will pay interest IF they do not refund your money and it is later proved it should have been... that is after you have filed for a refund... prior to asking for your money back.... no interest...


BTW, you could have figured out the interest to the day you mail and added it to the check... this stops interest accruing... Interest is pretty low... don't want to waste time looking it up...
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Old 04-07-2011, 12:19 PM   #12
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The interest is pretty low. 2 years ago I underpaid my LA state taxes by too much and was subject to penalties including interest. TurboTax pointed me in the direction to calculate the penalty and I paid it. Bless their hearts, the LA IRS folks refunded the penalty
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