I'm a recent college graduate who electronically filed my taxes early this year. I did not claim myself as a dependant and filled out my forms as such. However, after e-filing my tax returns, my parents found out that they can still claim me as a dependant for 2006. So I mailed a 1040X to amend my federal return.
In my original tax return as a non-dependant, I was supposed to get X value back. Now that I'm being claimed as a dependant, I'm supposed to get a lesser value back.
However, this past weekend, I got my refund back (via direct deposit) from the original return that I had sent through. That means the IRS gave me back more money than they were supposed to.
Does this mean I need to send a check back before April 17? Or should I wait for a notice from the IRS after they've processed my 1040X?
2007-04-15 15:42:44 · 7 answers · asked by Ness 1 in Business & Finance ➔ Taxes ➔ United States
Yes you had better follow through the IRS will wait for about 5 years and then hit you up ---big!! While I am not a tax attorney or accountant I do have an experience with something similar back in 2001 I took a 1500$ disbursement from my IRA, at the time I did not realize you need to count this as income. Fast forward to the year 2006 I get a letter from IRS saying I did not pay the proper tax on my 2001 income tax return and that I owed them close to 8000$. To me it does not seem possible to owe that much for my own money but that was the penalty they took my return from last year about 2200$ and this year 1600$ and I pay 200$ a month on a bill of roughly 3900$. Pay now before they hit you with penalties and interest.
2007-04-15 15:52:13 · answer #1 · answered by Frank R 7 · 1⤊ 2⤋
Gee, I wish you'd asked me before you filed the 1040X. ;)
I always tell my clients to wait until the original return has been processed before filing the amended one. Technically, you probably should have sent a check for the difference between the refund amount on the original 1040 and that of the 1040X when you mailed it. But, then, there was no way you could have known that.
It really bothers me to have someone send a check by itself to the IRS. They usually need some kind of form to go with it, so they know what to do with it. I've had clients who had their payments posted to the wrong accounts and so forth, so.. when you do send it in, it might be best to send another copy of the 1040X (plainly marked "File Copy") and a letter, explaining that you'd previously filed the amended return but hadn't enclosed a check for the difference in refund amounts. Write your social security number on the check, made out to the US Treasury Department, and "2006 Form 1040X" on there. Be sure your phone number is on there, too.
2007-04-15 15:56:18 · answer #2 · answered by Anonymous · 0⤊ 1⤋
First, I'd wnat to find out whose error it was and what the change of refudn was all abut. However, if you are CERTAIN you got more than you were supposed to, you would need to pay it back by 4/17 to avoid interest if the IRS ever does claim it back. But you would also need to send a letter of explanation. It's not as easy as it sounds.
DO get a tax pro to look at your case BEFORE doing anything to avoid unneccessary pain on your part.
The IRS will not have a clue with why you are sending them money if you just drop a check in the mail with a nice note to them!
- A Damn Fine Tax Advisor
2007-04-15 15:49:51 · answer #3 · answered by WealthBuilder 4 · 1⤊ 2⤋
When you filed the Form 1040X, you should have enclosed a check for the difference in the tax owed as shown on the Form 1040X. If you didn't, get that check in the mail by midnight on Tuesday!
2007-04-15 15:47:55 · answer #4 · answered by Bostonian In MO 7 · 3⤊ 0⤋
first do you live near a IRS office we have one in our olde federal building take all the stuff down there and ask this question dont send any money yet dont panic my daughter didnt file for four years because she was on our taxes now we filled out all four years and the state and the city so we are good
2007-04-15 15:52:33 · answer #5 · answered by Anonymous · 0⤊ 0⤋
You need to notify them about the mistake. They will ask for the money back, and you can write them a check. You can deposit this check and keep the money until you hear from them. Trust me you will hear from them.
2007-04-15 15:48:51 · answer #6 · answered by lestermount 7 · 3⤊ 0⤋
Practically everyone got back an extra 30 bucks this year because of some cell phone tax issue. If you got it, dont worry about it.
2007-04-15 15:48:05 · answer #7 · answered by freshbliss 6 · 0⤊ 4⤋