Help!!I need tax advice ASAP!

I already filed and will have the $$ deposited on Friday,but I completely forgot about $1470.00 interest earned on a bond we cashed until we got a 1099 in the mail yesterday Do I really need to amend my return and make a big mess of it ,or is it small enough it doesn't matter??HELP!!!!Or will they catch it and fix it for me??
Thank you

The IRS was sent a copy of the 1099 (probably electronically) so they will be looking for you to report at least that much in interest. Almost all 1099s are electronically submitted to the IRS, they can easily match up your return (especially if you filed electronically) with the amounts on the 1099s. If you filed it by paper, it will take a little longer to match up and might never be matched up.

I'd say amend it, it wont be hard and the amount of tax wouldn't be much, you will just have to write them a check for the amount.

lilchefed wrote:

The IRS was sent a copy of the 1099 (probably electronically) so they will be looking for you to report at least that much in interest. Almost all 1099s are electronically submitted to the IRS, they can easily match up your return (especially if you filed electronically) with the amounts on the 1099s. If you filed it by paper, it will take a little longer to match up and might never be matched up.

I'd say amend it, it wont be hard and the amount of tax wouldn't be much, you will just have to write them a check for the amount.

Several years ago, I had a portion of a debt written off by a creditor. I was un-aware that the portion written off was considered to be income. The IRS caught it 3 years later and the fines were rather steep.

We had the same issue a few years ago. Amend your return. It won't effect your refund very much, if at all, and it'll potentially save you a big head ache down the road.

well now it's telling me I need to send IRS $525.00---is that because the original amount is going in the bank account Friday??

What is telling you that?

The same thing happened to me several years ago, I forgot about the bonds I cashed in earlier in the year. From that experience I never file until Feb 1st because financial institutions have until the 31st of January to mail out 1099's.

Just go in and file an amended return including that interest income and refile it using the e-file option. Whatever figure you owe for the interest income from the bond will be figured and an amended refund or amount due will be calculated. I don't think you can stop the deposit from the previous return but you will have send the difference back to the IRS from the earlier return. There shouldn't be any penalty because you caught it quickly.

luv2cook wrote:

What is telling you that?

turbotax

slider wrote:

Just go in and file an amended return including that interest income and refile it using the e-file option. Whatever figure you owe for the interest income from the bond will be figured and an amended refund or amount due will be calculated. I don't think you can stop the deposit from the previous return but you will have send the difference back to the IRS from the earlier return. There shouldn't be any penalty because you caught it quickly.

Yep this sounds like the thing to do, but FIRST I would wait and check the size of my deposit on Friday and make sure this amount has not already been deducted from your refund Wilky.

thanks,I will-taxes suck!!