Oops, I forgot a deduction (file amended return?)

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Userdc
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Joined: Tue Jun 21, 2011 9:30 am

Oops, I forgot a deduction (file amended return?)

Post by Userdc »

While doing my taxes this year, I realized that one of the charities I contributed to in 2013 I had also contributed to in 2012 and 2011 but I did not include those deductions on the prior year returns.

I remember is being pretty easy to file a 1040X by hand in the past, but three questions:

1) what is the minimum amount you would do this for: i.e. how big a check would you need to expect to be willing to deal with the hassle of digging up the receipts (wherever they are), filling out the 1040X and mailing in (maybe 2 hrs of work)?

2) does this make it more likely for me to be audited and end up spending even more precious time on taxes, and does that influence the answer to question #1?

3) if I can't find the receipts, but I can see the debit on an old credit card statement, should I still re-file?
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JamesSFO
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Re: Oops, I forgot a deduction (file amended return?)

Post by JamesSFO »

Personally, I just find it a pain and wouldn't do it unless there was a clear error (missed a matching form that the IRS would receive like 1099; misfollowed directions) or a substantial >$500 error in my favor. My time is too valuable. You don't say what your charitable contribution was, but most of mine are more like $100, which would mean what at most ~$33 of taxes. Also you need to amend your state return too.

I don't believe per se it makes you more vulnerable to an audit, but who knows what red flags they've concocted. I've had to amend several times due to late arriving changed 1099s. I like to file early and when I owned REITs...
jebmke
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Re: Oops, I forgot a deduction (file amended return?)

Post by jebmke »

Unless the changes are extensive, amendments are easier than doing a normal return. I don't really look at a threshold at TaxAide. If there is a change, we amend and file.

A simple change to Schedule A shouldn't take more than 10-15 minutes.
Don't trust me, look it up. https://www.irs.gov/forms-instructions-and-publications
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cheese_breath
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Re: Oops, I forgot a deduction (file amended return?)

Post by cheese_breath »

If it's only two hours work as you think I'd go ahead and do it if it reduced my taxes by $100 or more. That's $50 per hour. Less than that, and I wouldn't bother with it.

I doubt this single change would make you more susceptible to audit. But then, I'm not the IRS.

Claiming deductions without receipts is risky. If you did happen to be audited you would need to demonstrate that you didn't receive anything of value back from the charity in return for your donation. You can't do this with a credit card statement.
The surest way to know the future is when it becomes the past.
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G-Money
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Re: Oops, I forgot a deduction (file amended return?)

Post by G-Money »

I'm not sure I'd set a minimum threshold to file an amended return. It's not like every moment of my day is used optimally to begin with. So if I could make a few extra bucks by filing the form and it's not particularly onerous, why not?
Don't assume I know what I'm talking about.
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Userdc
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Re: Oops, I forgot a deduction (file amended return?)

Post by Userdc »

Thanks for the thoughts, all.

I did a little more research and found this on the IRS website:
You must have a written record about your donation in order to deduct any cash gift, regardless of the amount. Cash contributions include those made by check or other monetary methods. That written record can be a written statement from the organization, a bank record or a payroll deduction record that substantiates your donation. That documentation should include the name of the organization, the date and amount of the contribution. A telephone bill meets this requirement for text donations if it shows this same information
http://www.irs.gov/uac/Newsroom/Nine-Ti ... tributions

It seems there are stricter restrictions for donations greater than $250, but based on this, a credit card statement should be sufficient for smaller donations.
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Jay69
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Re: Oops, I forgot a deduction (file amended return?)

Post by Jay69 »

If I still had Turbo Tax on my computer, made back at least $100 (for each year) and had the documents to show such deductions then maybe. Doing a 1040X is easy enough with Turbo Tax, I have done it. In my case I forgot a 1099 from a rollover, did not make a change to the return dollar amount but it was a enough of pain to teach me to be more careful!!

Don't forget you are going to want to keep those 2 files for your records as well, something else to mess with.
"Out of clutter, find simplicity” Albert Einstein
jebmke
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Re: Oops, I forgot a deduction (file amended return?)

Post by jebmke »

cheese_breath wrote:Claiming deductions without receipts is risky.
I can vouch for this. When they audited my 2010 return they requested every document supporting every entry on Schedule A as well as every supporting document for my HSA (contributions and distributions). Keep those receipts!!
Don't trust me, look it up. https://www.irs.gov/forms-instructions-and-publications
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House Blend
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Re: Oops, I forgot a deduction (file amended return?)

Post by House Blend »

For <$100 I wouldn't bother. But I don't clip coupons either.

Last year, I amended Federal + State in order to save a combined $450, and it took several hours of my time. Including at least two hours on hold with the IRS, trying to find someone who could explain why they mishandled my 1040-X. Short answer: whoever processed it didn't understand the relevant parts of the tax code. I was advised to file another 1040-X, this time with a xerox copy of the relevant page from the instructions for Form 8606 attached and highlighted.
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