Question on 1040X, need to change filing status.?

Question

For our 2006 taxes we went to H&R Block as usual to file. Me and my BF have been together for 6 years and have 2 children together. We have always filed single and I claim as HOH and our 2 children. This year when we went to file the tax preparer was lecturing us how last year we should have filed married, filing jointly because we have been together for 5 years... when I asked her why she told me California's Common Law. She said we could be audited for our 2005 return. To make this story short we filed our 2006 taxes as married jointly in Feb 07', per our tax preparer advice. Anyways I've done my research and California doesn't have common law and I am soo pissed! I'm scared that I'm gonna get trouble because I took too long and didn't research this right away. Can anyone give me advice, and is filing the 1040X the right form I should use or is too late?

2nd answer reminded me of something. I also purchased peace of mind. Is this useless?

Answer 1

Although you got an ignorant preparer, I recommend that you pursue this problem with H&R Block. If the office you went to is not open, go to the district office that is open, and explain your problem.

There are nonseasonal employees who have experience to solve your problem, and they should solve it for free. Be persistent. If the office wants to ignore you, contact the corporate headquarters.

If you or your BF end up owing taxes, the Peace of Mind guarantee should pay up those taxes, plus any penalties and interest. Say your BF ends up owing taxes...POM pays that.

Then, if you are due a refund, which I think you are, you keep that refund, don't "net it" against the taxes owed.

That's the approach I would take.

As far as which form to use, you would each need a 1040X, but you need a good professional to handle it for you.

Answer 2

Well, first of all, CA doesn't recognize common law marriage - see http://en.wikipedia.org/wiki/Common-law_marriage - you already found that out.

And common law marriage, even where it is recognized, requires more that just living together, and having children together.

One 1040X won't do it, since BOTH of your returns are messed up. Your situation now is pretty complex, thanks to the incompent H&R preparer. I'd suggest taking all of your documents, and a copy of the return as originally filed, to a CPA or to your local IRS office, and having them help you straighten it out. You shouldn't be in any trouble - actually, you might have a refund coming.

H&R Block preparers can be a real problem. They have some who are very knowledgeable, and others who are just hired off the street for the season, with very little training other than a course they are run through. You get the "luck of the draw" when you go to H&R.

Answer 3

You got very bad information from the preparer at H&R. They would have some responsibility to repair that for you at no cost. In the off season either the owner or an experienced person is more likely to be working in the office. I would consider going back to them and ask to speak to the owner. They should file an ammended return for both of you at no cost. You would want to do that before the IRS figures it out if they ever do.

Answer 4

Changing filing status is simple, so don't worry about it.

Both you and your BF need to amend your returns and file separately. He as single and you as HOH.

Go back to H&R to have your returns amended. It was their error, so they will amend your returns for free.

Based on the amended returns, if either of you or your BF resulted in having a tax liability, you need to pay the tax liability and H&R will have to pay all interest and penalty incur from that tax liability.

Since you found the mistake now, you can go back to H&R and have them amend your return now.