Income tax question - please help if you can

[october]

I have an income tax question that I'll ask here because some of you might know the answer so I don't have to sit on hold for hours with the IRS.

I did my taxes the other day when my last W2 showed up and efiled them already through my HR Block software. Now the next day a 1099-G form showed up from the state of Maryland showing my unemployment income for the month of January. So now I need to file a 1040-X form (amended return) to correct this mistake since I already sent in my 1040. I brought up my taxes on the computer and saved under a different name so that I could input the 1099-G and see the change. It took a little bit away from my refund. What this means is I'm going to have a refund sent to me in a couple weeks that is larger than what I'm supposed to get.

So here's the actual question: would it be ok if I waited until my refund shows up (mid February) and then submit my amended return with a check for what I owe them? I think that would be simpler because if I send it now it won't catch up to them before they cut my refund.

 

[RoddyVR]

i'd be literaly AFRAID of owing the IRS any amount of money for any period of time because of a mistake i made. they're HORRIBLE when it comes to interest, fees, penalties, and who knows what other names they can come up with to take more of your money.

i'd fill out the 1040x now and send it in now with the check for the difference. that way, by the time they could figure out that you owe them money, you'll have already paid it.

oh, i'm NO tax expert by the way, so take it with a grain of salt or two.

 

[october]

thanks for the reply. any other thoughts?

 

[Shadylookin]

I would go to irs.gov and look for some information

 

[Birdjaguar]

I assume that you meant January 2004 income on the late 1099. BTW, that's what you get for doing your taxes too early. I don't know how much money you are talking about, but one month's unemployment income may not even affect your taxes, especially if you are gettting a refund anyway.
First question: How much money in additional taxes you owe are we talking about?
If the taxes you owe on the new income is less than $100, I'd just forget about it and see if the IRS contacts you sometime later in the year. If they do, then just explain that you got the 1099 after you filed and pay whatever they ask. Most likely, you will not hear from them.

If you owe more than $100, then I would wait for your refund, cash the check and then when your account is balanced in their system (very important) call (or better write) your local IRS office and explain what happened and ask them what you should do. Put the burden on them to solve your tax problem.

 

[HighlandWarrior]

I'd wait as your taxes arent due till april, and you should get your return shortly.

 

[october]

we're talking about 2100 in unemployment income, which had no withholding. That chopped about 300 bucks off my federal income and 200 off my state. so I'll hve to amend each and pay. i'll do it later in february.

I don't feel bad for doing my taxes early. always have done it eary, cus I always get a refund. and when you got a family like I have, I don't want to wait until april to file.

 

[Turner]

If it was me, I would wait until you get your refund check, then call the IRS and say 'Oops.' Offer to pay it immediately, if they ask. Better not to be on thier bad side, ya know?

Dare I say the 'a'-word? That would get really sticky if they audited you, and you hadn't fessed up.

 

[october]

i wasn't asking if I could totally ignore it and get away with it. i intend to pay it; just wondering if it's ok to wait until I get the refund so they don't cross in the mail and risk confusion.

 

[AKVideo]

i wasn't asking if I could totally ignore it and get away with it. i intend to pay it; just wondering if it's ok to wait until I get the refund so they don't cross in the mail and risk confusion.

I would wait until you get your refund first just in case they find the mistake.
If they don't pick up the mistake file an amended return.

Don't expect them to find the problem though as the burden is on you to file your taxes out properly.

Good Luck

 

[Duke of Marlbrough]

Since they may already have the 1099 info and such in their system, it is possible they may adjust your return for you automatically and send you a 'corrected' refund amount. [If not, then the usual course of action is to not cash the check. Once you cash the check you're looking at interest penalties, even if you plan on writing them a check for the difference. However, I'm assumng that since you e-filed your return that you are also having it direct depositied into your account, so there's no check involved.]

Basically, once you get your refund, check it against your return and see if it is the right amount. If it matches what you first filed, then send in an amended return with a check for the difference. Don't forget about your state or local returns either.

http://www.irs.gov/faqs/faq1-3.html
I received a refund that is more than I should have received because I've discovered I made a mistake on my return. I have not yet cashed this check. What should I do now?
Many mistakes are corrected in processing and a letter of explanation is mailed at the time the refund is issued. If the mistake was not corrected in processing, you need to file an amended or corrected return using Form 1040X (PDF) , Amended U.S. Individual Income Tax Return, as soon as possible. Include copies of any schedules that have been changed or any Forms W-2 you did not include. If you return the refund check with a letter of explanation, a refund in the correct amount will be issued when the amended return processes.

 

[october]

thanks....that was helpful

 

[Stapel]

This is not really helpful, but it might just be interesting.

I brought up my taxes on the computer and saved under a different name so that I could input the 1099-G and see the change. It took a little bit away from my refund. What this means is I'm going to have a refund sent to me in a couple weeks that is larger than what I'm supposed to get.

In 2002, the company I worked for went bankrupt. The october salaries had been paid, the november salries not. The official bankrupcy was declared (by a district court) on december 1th. The Dutch collective bankrupcy insurance system payed 100% of my november salary.
The dutch collective unemployement insurance payed 70% of my latest salry in the month december.

So for 2002, I officially had three different employers. In my tax program, I simply filled them all in under 'employers salary'. I didn't even think about putting the latest insurance (the first insurance counts as salary from employer) pay under 'insurance salary'.
The difference is that for salary payef by an employer will provide a tax deduction.
I thus had given myself an extra deduction .
Within 3 weeks, I got the 2500 (or so) euro refund (transfered by bank, we don't do checks here).
In november 2004, I got a letter, that it should have been 2400 euros. After a formal protest, I simply got a bill, to be payed by bank transfer.
No fine, only interest.