Author Topic: Do I need to file an amended tax return?  (Read 442 times)

plank

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Do I need to file an amended tax return?
« on: May 13, 2022, 06:47:39 AM »
I live abroad and file my taxes despite not owing any money.  I am a stay at home husband and file taxes with an income of $0.  I just received a letter from the IRS saying I received $24.77 in interest from my stimulus money last year. The letter says this should be treated as income and should be used when I file my taxes.  Should I file an ammended tax form for 2021?  My income will go from $0 to $24.77 and I obviously won't have to pay any income taxes either way. 

If I have to file, which form should I use?

SeattleCPA

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Re: Do I need to file an amended tax return?
« Reply #1 on: May 13, 2022, 04:52:36 PM »
You are surely under the standard deduction threshold. So no you don't need to file.

plank

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Re: Do I need to file an amended tax return?
« Reply #2 on: May 13, 2022, 11:31:03 PM »
Thanks for the reply.  Since I already filed for 2021, should I file an amended tax return or is that unnecessary since, as you said, I'm still well below the standard deduction?

MustacheAndaHalf

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Re: Do I need to file an amended tax return?
« Reply #3 on: May 17, 2022, 07:57:46 PM »
Thanks for the reply.  Since I already filed for 2021, should I file an amended tax return or is that unnecessary since, as you said, I'm still well below the standard deduction?
I wonder why the IRS is wasting their time with $24 income when you have an unused $12,550 standard deduction.  But who knows, maybe two departments aren't talking to each other.  Since the IRS took the trouble to send an audit letter, in your place I'd file an amended return to try and resolve it.

I recall filing 1040-X once years ago, and only printing and mailing the pages that changed.  So it might be a smaller filing than you expect, and you can use tax software to help (look for "1040-X" or "amend my return").

zygote

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Re: Do I need to file an amended tax return?
« Reply #4 on: May 19, 2022, 08:13:37 AM »
My read on it from the OP is not that it's an audit letter, but a notice of income like the letters we all received confirming the amount of stimulus money the IRS thinks they sent us. It's my understanding that letters like that are just for accounting/clarity, and that their effect depends on the situation. If the OP had a lot of income and this $24 would be added to the 24% tax bracket or something, sure, it might be an issue. But it sounds like in OP's situation, bringing their income from $0 to $24 changes the tax liability from $0 to $0 because it's all within the standard deduction.

If that's really the case, I personally wouldn't bother filing an amended return. What would the consequence be if they audit you? A $0 penalty for late payment of $0 additional taxes owed?

But of course I don't know your full tax situation, so I could very well be missing something! I'm just an amateur who tries to parse out my own taxes. So that's how I would think it through in my own situation, not necessarily advice about yours.