I purposely waited to file my taxes hoping that the corrected 1099's were final. Yesterday's mail had a second set of corrected 1099's from VBS. The good news is my taxes will decrease $83.
My questions are:
1. Can I efile again with Turbotax for free? Do I file an amended return?
2. How long should I wait in case there are more corrections in the works?
Vanguard Brokerage Corrected Statements and Turbotax
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Re: Vanguard Brokerage Corrected Statements and Turbotax
LifeIsGood wrote:I purposely waited to file my taxes hoping that the corrected 1099's were final. Yesterday's mail had a second set of corrected 1099's from VBS. The good news is my taxes will decrease $83.
My questions are:
1. Can I efile again with Turbotax for free? Do I file an amended return?
You have already filed your return so you will need to file an amended return. You don't want to submit 2 tax returns to the IRS. Use Turbotax to complete the amended return and let it tell you what paperwork you need to send to the IRS. Amended returns can only be mailed.
2. How long should I wait in case there are more corrections in the works?
You've been burned once so there is no need to rush for $83. I'd wait until about July 1 and then file the amended return. You will also need to amend any state income tax returns. You do not owe any additional taxes so you have 3 years to amend your return.
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Re: Vanguard Brokerage Corrected Statements and Turbotax
Thanks for the info. OUCH! I guess the early bird gets the shaft. If I were to leave everything as is and not file an amended return, wouldn't IRS catch the discrepancy on my return and just refund the difference?
Last edited by LifeIsGood on Sun Mar 09, 2014 6:46 pm, edited 2 times in total.
Re: Vanguard Brokerage Corrected Statements and Turbotax
Probably not. As you have learned, there is little upside to filing early. At this point, I'd wait a few months and then file an amended return.LifeIsGood wrote:Thanks for the info. OUCH! I guess the early bird get the shaft. If I were to leave everything as is and not file an amended return, wouldn't IRS catch the discrepancy on my return and just refund the difference?
Stay hydrated; don't sweat the small stuff
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Re: Vanguard Brokerage Corrected Statements and Turbotax
The IRS will not correct that type of error on their own. The IRS will not correct for over-reporting of income, since they cannot be sure you are reporting income for which they have not received information returns. The IRS will usually correct math errors and tax calculation errors. They will also adjust refunds for an under statement for estimated taxes paid, such as when someone forgets to include all payments of estimated taxes paid.LifeIsGood wrote:Thanks for the info. OUCH! I guess the early bird get's the shaft. If I were to leave everything as is and not file an amended return, wouldn't IRS catch the discrepancy on my return and just refund the difference?
To correct for your type of error, an amended return is in order.
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Re: Vanguard Brokerage Corrected Statements and Turbotax
Out of curiosity, what funds were corrected? I haven't gotten a corrected statement yet, and own VEU VXUS, VTI, and VOO. Plus one mutual fund. Should I keep waiting?
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Re: Vanguard Brokerage Corrected Statements and Turbotax
The correction was for a dividend paying stock that I own in my "Play Money" portfolio.letsgobobby wrote:Out of curiosity, what funds were corrected? I haven't gotten a corrected statement yet, and own VEU VXUS, VTI, and VOO. Plus one mutual fund. Should I keep waiting?
Thanks HouseStark, jebmke, and earlyout for the info. I appreciate your help.