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Tax refunded - What would you do?

Begin quote: = = = = = = = Dear Sir;

After filing our tax return we discovered a previously-unreported 1099 that consisted of ? Additional $4,646 in dividends (Additional tax = $247) ? Additional $355 in capital gains distribution (Additional tax = $18)

? Total additional tax = $265 ? Six months interest on late payment = $9 ? Total due (enclosed) = $274

Signed (both wife and I signed and put our tax-id numbers) End quote. = = = = = = = = = No tax form, just the above letter. I enclosed a check which was deposited within 3 days. Yesterday, I received a refund check from the state's tax department for $274.

As a side note: I sent a similar letter to the IRS, but because the tax did not change, no check was enclosed. I never heard from the IRS.

Reply to
NadCixelsyd
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You should file an amended return, not send a letter. The IRS has a form

1040X for this, I'd expect your state has something similar.

How is it that this only affected your state tax and not your federal tax?

Reply to
Barry Margolin

well, simply submit amended returns! (Isn't the fed. form 1040X ? available on-line

Reply to
Mathedman

Your state probably did exactly as they should. Your letter likely did not meet the requirements of an amended return so it wasn't processed as one. The check was properly credited to your existing, non-amended return and when the state's computers noticed an apparent over-payment you were sent a refund.

The correct thing for you to do is to file a proper amended state return. After all, you do still owe the money. There is no point in filing a no tax change 1040X unless you hear from the Feds.

Reply to
BignTall

. With several hundred "users", the IRS can hardly respond to e-mails or whatever. Simply file amended tax returns ---the feds even provide a form for that. (1040X ??)

Reply to
Mathedman

The FED tax was zero in both cases. Several factors: (A)Knowing that I would be taking the standard deduction in 2018, I prepaid paid an additional $22k of real estate taxes and $5k of state income taxes. I prepaid so many taxes that (on my original return) I did not even deduct the state income taxes. However, they were deducted on the amended return. (B) I had a $1400 foreign tax credit but I only used $120 on my original return and $1280 on the amended return.

This was a rare occurrence. Even though retired, I normally have a FED liability of $8k. As I normally pay about $24000 in real estate taxes but most of that will go to waste with the $10k limit this year, Trump's tax "cut" will actually cause my normal tax to increase to about $9k after the $26k standard deduction for seniors.

Reply to
NadCixelsyd

I'd file both state and Federal amended returns. As others have said, you must file the state amended return in order for the state to process it.

I'd file the Federal return because, eventually, they will notice the missing

1099, and might reprocess the return in a manner which might net you more tax.

-- Arthur Rubin, Brea, CA

Reply to
Arthur Rubin

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