I filed my 2006 taxes on April 15, 2007, and paid extra taxes that were due. The income was from wage (W2), interest (1099INT), dividend (1099DIV), and a corrective distribution from 401K, for being classified as a highly compensated employee (1099R).
In November, my company informed that the corrective distrubution was larger than necessary, and that I can "return the excess corrective distribution". This return will get credited back to my 401k, thus reducing income, and ultimately reducing taxes. To do this I need to file 1040X.
After using paper and pencil to do taxes for 18 years, this year for the first time I had used a tax program, Tax Act. So, filing 1040x would be quite straight forward. I would like to file the amended return for 2006 now, and get the refund, before IRS (and I) get busy with the 2007 taxes in January, 2008.
The organizing managing my company's 401k plan, MassMutual will issue a corrected 1099R by Feb 2008, smack in the middle of the season for
2007 taxes. MassMutual said that I can "use the letter from my company that lists refund amount to go ahead and amend the tax return for 2006, without waiting for 1099R".Is this correct? I know that I do not have to submit the 1099R- corrected with 1040x (since there is no tax deducted). But if I know what the corrected amount is going to be, can I simply file the 1040X now, rather than wait for Feb 2008? Again, this for the 2006 taxes, filed in April 2007.
Bhoot Nath