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I Am Filing An Amended 1040 Tax Return

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Ahhhh, I messed up! Sometimes it pays to get a professional and just this past tax filing season I made a small mistake that turned into a minor inconvenience that, luckily since I caught it, didn’t get any worse than it could’ve. What happened was that I messed up my taxes and was underreporting my business income by a significant amount and so I had to file the awesome 1040X Amended Return form in order to repair the error (since it was in my favor, which is bad). The plus side is that I found it before the filing deadline so there will be no penalties.

Filing the 1040X was pretty easy but TurboTax didn’t do a great job in generating it so I resorted to filling it out by hand with a head star from TurboTax. Since I had e-filed about a month ago, the return had already been accepted so I could proceed as normal. If it hadn’t, I would’ve been forced to wait until the e-file was reviewed and accepted (which only a day or so when I did it a month ago) before I could mail in my amended return. I owed a little bit more tax but, with the help of Kay from Don’t Mess With Taxes, I was able to sort everything out.

Some little headaches that shook out of this were:
SEP-IRA Contribution – With more income comes more of an employer contribution, which is good and bad I suppose. Either way I was able to sock a little more away for an old rainy day.
State taxes – Again, with more income comes more taxes and this time it was with the state of Maryland. The state amended form was also pretty easy to fill out and so it wasn’t too too bad, though TurboTax again was messed up.

TurboTax didn’t remember that I paid part of my taxes a month ago so in Line 17 of the 1040X, where you would’ve entered in how much you’ve already paid, it left it blank – which meant I would’ve been paying way too much. With the state return, it just assumed you paid for the whole thing already – which would’ve resulted in penalties and interest. So, double check your forms before you mail them off… sometimes you make the mistakes and sometimes your preparer does.

You might be wondering how I found my error a month later, or you might not, but I was calculating my total income for the year (not realizing it was on the header printout of the TurboTax form because they changed how it looked this year) when I noticed a discrepancy. When I flipped back to my return I saw that I had underreported income that didn’t appear on a 1099, I probably was in too much of a hurry to finish and clicked past a question that I thought didn’t apply but really did. Either way, I found it so no harm, no foul so I’m pretty thankful.

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13 Responses to “I Am Filing An Amended 1040 Tax Return”

  1. dong says:

    I filled out 1040X this year on behalf of my girlfriend. She messed up and didn’t take enough of deduction. Now I’m wondering when does she get her refund…

    I’ve been considering moving to a professional just as my taxes have gotten more complicated. Not sure if it’s my taxes or the tax code in general. However, I remain unconvinced that they’ll do a much better job than me and TurboxTax. Though I think TurboTax is due for a major overhaul.

  2. jim says:

    If I didn’t have to deal with the aspects of recording income from this site, I probably wouldn’t have even considered using a professional but I might consider it for next year.

    Now my headache is how TurboTax handles the amended return. Maryland has already deducted the tax but the Federal tax hasn’t been, so I don’t know if they’ll deduct the new value or the old value on the scheduled date of the 13th. If they deduct the old value, I need to send in a difference with the amended return. Argh…

  3. Miller says:

    Do you mind sharing the delta that you owe? Just wondering how “bad” of a mistake you unintentially made…

  4. NCN says:

    Jim,
    I’m thinking about opening a SEP… any advice?
    I have a 403b, my wife has pension, we both have Roths…
    but I too need somewhere to “put” my blog income…
    Any pointers would rock!
    Thanks,
    NCN

  5. jim says:

    I’d totally open a SEP, try to do it at the place you have your Roth that way you can maybe meet account minimums if your employer contribution isn’t enough to avoid low balance fees. I know Nickel does a SEP and so do I, I put in the max I can as an employer each year… it’s awesome.

  6. Star Money Articles for the Week of April 9

    Here are interesting posts and news this week from the MoneyBlogNetwork members and beyond: Five Cent Nickel suggests how to prioritize your retirement accounts. Blueprint for Financial Prosperity is filing an updated tax return. Consumerism Commentary…

  7. George says:

    I had to file a 1040X for 2005 after my accountant failed to include SUBSTANTIAL amount of my income from a new source (corp to corp, so no 1099). I was refunded $5800 last year; now have to pay $4100 back. Fortunately, since it was the accountant’s error, I won’t have to pay the penalties.

  8. C. J. says:

    I am filing an amended tax return (both Fed and CA) because I recently received my K-1 so have more income to report.

    Turbotax didn’t do the amended returns right so it will take me some time to do manually, since I have already filed both Fed and Ca returns, does anyone know if I incur any penalties if I don’t file the amended returns by tomorrow’s deadline of 4-17-07?? Thanks!

  9. Andy says:

    This article helped me with TurboTax:

    http://turbotax.intuit.com/support/kb/general-program-issues/tax-essentials/3628.html?_requestid=43521

    The instructions provided within the program are various shades of wrong.

  10. Ken says:

    It seems Turbo Tax is being slammed unjustly.

    Filing an amended tax return is a bit tricky. I used Turbo Tax successfully, but, one must READ and FOLLOW instructions carefully.

  11. george rogers says:

    I did my taxes online with turbow tax and there is something wrong,i haven’t receive nothing in the mail,i did them the first week in march,and was wondering if i could check the status of my refund to do it over.


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