Tax Refund, Due to my error

I am an (CT) individual, not a tax pro. I have always prepared our reasonably simple returns (TurboTax).

In March 2015, I received a ~$150 CT tax refund, noted to be for an overpayment in the prior tax year. That payment was due to my CT data entry error. I, initially, did not understand the reason for the CT change. Thus I filed for an extension, for our TY 2014 CT and IRS filings.

That error/ refund was obviously small. I was/am not certain how to handle that $150 refund/ ergo income with our TY 2014 submissions ? I FAR over paid any amount that will be owed, and included that check with our 4/15 extension filing requests.

If I make a NEW error, when I soon file our TY 2014 returns, will the two tax boards merely correct any NEW error- then send a letter explaining their change (charge)? I know I will not owe any money, due to underpayment. It is my assumption that I will NOT be accessed any penalty, for a new data entry error. Is that correct?

Note: I have asked a tax firm, for an estimate to complete those CT/ IRS returns. I was quoted at least $750. I sure do not anticipate any tax penaltly (if any) near that cost! If CT and the IRS tax boards merely fix my possible new errors, I see no apparent down side with myself preparing the returns??

Joe

Reply to
joe
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You are making too much out of this. (assuming the unstated reason for the refund isn't a serious problem...) It does not affect your 2014 returns, so file them. It does have to appear on your 2015 Federal return as a state refund, but not on the CT return.

An entry error could be a serious problem or nothing at all; it depends on the error. The tax department might find your error or they might not; assume the worst.

Reply to
Troubled

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