Author Topic: After filing my taxes, got statement for $41 interest income, need 1040x?  (Read 3874 times)

headwinds

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After finishing my taxes...

I got a 1099-int statement from my mortgage company, i guess they pay me interest on overpaid escrow? (the escrow is for HOI and property tax)

Its only $41

Can I get away with not filing a 1040x? Or is the IRS going to penalize me for overlooking this.

I don't care about the $10 they are going to tax me, I'd go down there and hand them a $10 bill right now. I just don't want to have to amend my filing, its a pain in the ass for a tiny error.

Thoughts?

headwinds

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Bump, and to add: I've heard IRS ignores income changes less than $50, anyone else hear that too?

headwinds

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OK cool thanks. I figure at worst I get a slap on the wrist. It's just a $41 income that I didn't know I had, as it was hidden inside of my mortgage account - interest on overpayment of escrow basically. Just don't want to have to re-file is all. :P
« Last Edit: January 28, 2017, 07:36:19 PM by headwinds »

MDM

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OTOH, 1040X is a very simple form and...ethics.

headwinds

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OTOH, 1040X is a very simple form and...ethics.

1040X + 540X, I'll look into it. It's just frustrating because I know it will take at least several hours to fix, during which if I had worked my regular job I would have made 2-3 times as much as the interest in question, just seems so stupid

Spork

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I had something similar happen in a past year.

If you used one of the software packages (Turbotax, H&R, Taxact, etc)... it's a no brainer to file an update.  I haven't done it by hand, but from comments above it also sounds pretty no brainer.  It will probably make $0 difference in taxes (or $3 maybe...)  but: will you worry ever so slightly that "it is wrong, what now?"  If so, just do it.

I might wait until closer to April.  You may very well get another change between now and then.  The time it happened to me, the late form came AFTER April 15.

DailyGrindFree

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Weren't we supposed to wait until January,31 to make sure we have all the documents mailed to us?
I thought companies and businesses had until January, 31 to mail all the paper work? Am I wrong?
thanks

Spork

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Weren't we supposed to wait until January,31 to make sure we have all the documents mailed to us?
I thought companies and businesses had until January, 31 to mail all the paper work? Am I wrong?
thanks

It depends on the document.  Schedule K's aren't due until mid March.  Some 1099s are mid February.

headwinds

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Weren't we supposed to wait until January,31 to make sure we have all the documents mailed to us?
I thought companies and businesses had until January, 31 to mail all the paper work? Am I wrong?
thanks

yeah, i just thought i had everything. didnt realize this one was coming :(

DailyGrindFree

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Weren't we supposed to wait until January,31 to make sure we have all the documents mailed to us?
I thought companies and businesses had until January, 31 to mail all the paper work? Am I wrong?
thanks

It depends on the document.  Schedule K's aren't due until mid March.  Some 1099s are mid February.

Cool. Thanks. I guess I never had any of these issues because I always did my taxes late March or early April. Not too early not too late. :-)

headwinds

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Re: After filing my taxes, got statement for $41 interest income, need 1040x?
« Reply #10 on: January 29, 2017, 11:50:28 AM »
Weren't we supposed to wait until January,31 to make sure we have all the documents mailed to us?
I thought companies and businesses had until January, 31 to mail all the paper work? Am I wrong?
thanks

It depends on the document.  Schedule K's aren't due until mid March.  Some 1099s are mid February.

Cool. Thanks. I guess I never had any of these issues because I always did my taxes late March or early April. Not too early not too late. :-)

I just try to always get them done ASAP, guess i jumped the gun this time

CareCPA

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Re: After filing my taxes, got statement for $41 interest income, need 1040x?
« Reply #11 on: January 29, 2017, 06:48:05 PM »
If it's on a 1099, I might wait and see if the IRS corrects it for you - their matching usually picks this stuff up. Then if they don't, go ahead and amend, you've got time.

headwinds

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Re: After filing my taxes, got statement for $41 interest income, need 1040x?
« Reply #12 on: January 29, 2017, 08:50:59 PM »
If it's on a 1099, I might wait and see if the IRS corrects it for you - their matching usually picks this stuff up. Then if they don't, go ahead and amend, you've got time.

That sounds good, i'd love to have it caught and corrected automatically since it's only the difference of $10 or so on the return. Thanks for the advice

SeattleCPA

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Re: After filing my taxes, got statement for $41 interest income, need 1040x?
« Reply #13 on: February 05, 2017, 07:12:21 AM »
If it's on a 1099, I might wait and see if the IRS corrects it for you - their matching usually picks this stuff up. Then if they don't, go ahead and amend, you've got time.

That sounds good, i'd love to have it caught and corrected automatically since it's only the difference of $10 or so on the return. Thanks for the advice

I wouldn't amend the return. I'd wait for IRS and FTB to catch it. They'll probably just make you pay the $10 in tax. Worst case scenario is they ding you with the 25% penalty and charge you some interest... which on $10 will be less then $3.

headwinds

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Re: After filing my taxes, got statement for $41 interest income, need 1040x?
« Reply #14 on: February 05, 2017, 06:03:10 PM »
If it's on a 1099, I might wait and see if the IRS corrects it for you - their matching usually picks this stuff up. Then if they don't, go ahead and amend, you've got time.

That sounds good, i'd love to have it caught and corrected automatically since it's only the difference of $10 or so on the return. Thanks for the advice

I wouldn't amend the return. I'd wait for IRS and FTB to catch it. They'll probably just make you pay the $10 in tax. Worst case scenario is they ding you with the 25% penalty and charge you some interest... which on $10 will be less then $3.

Thank you, will do this

Reynold

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Re: After filing my taxes, got statement for $41 interest income, need 1040x?
« Reply #15 on: February 06, 2017, 10:33:07 AM »
yeah, i just thought i had everything. didnt realize this one was coming :(

I have had too many late surprises to be willing to file before March now, but I normally enter everything and get it ready much earlier. That also gives me time for any phone calls, etc. with questions I may  have about how to do certain things in the tax software (caught a bug in their business software one year, yay me?).

RangerOne

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Re: After filing my taxes, got statement for $41 interest income, need 1040x?
« Reply #16 on: February 06, 2017, 04:23:13 PM »
Worst case when you miss enough income is they will send a CP2000. Got one last year for some f'ups on my 2014 return. I mailed my corrections with the changes I agreed with and those I didn't and within two months it was all resolved with only 1 phone call and 1 letter with my corrections.

I was expecting the worst dealing with the IRS but they accepted my analysis of the notice without question and I was able to talk to an agent on the phone easily to make sure I was interpreting their form properly.

They only noticed the error because they received tax forms for said income. Most small amounts like you described aren't even reported so its not worth the time or effort to correct.

headwinds

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Re: After filing my taxes, got statement for $41 interest income, need 1040x?
« Reply #17 on: February 07, 2017, 01:23:16 PM »
Worst case when you miss enough income is they will send a CP2000. Got one last year for some f'ups on my 2014 return. I mailed my corrections with the changes I agreed with and those I didn't and within two months it was all resolved with only 1 phone call and 1 letter with my corrections.

I was expecting the worst dealing with the IRS but they accepted my analysis of the notice without question and I was able to talk to an agent on the phone easily to make sure I was interpreting their form properly.

They only noticed the error because they received tax forms for said income. Most small amounts like you described aren't even reported so its not worth the time or effort to correct.

I think it was reported because I got 1099-R for it. But planning to let them catch it if they can, I'm pretty sure I'm overpaying in some other ways that I don't know of so ethically I am comfortable with it.

 

Wow, a phone plan for fifteen bucks!