Amending 2016 Taxes

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dingdongditch
Posts: 20
Joined: Wed Mar 15, 2017 7:25 pm

Amending 2016 Taxes

Post by dingdongditch » Sun Apr 02, 2017 4:06 pm

Hello,

I filed my taxes for 2016 and we owed a little bit of money (on the order of $200), we paid and filed, a few days later I realized we could open a SEP IRA and reduce our tax liability, so we did that and now we are due a refund on the order of $2K. My question is since I paid federal already, once we file the amended taxes(wait like 8-12 weeks) do we receive the new refund amount + ~$200 we had been paid? (Does H&R block automatically figure this for you?)

For the state side of the taxes (North Carolina) We had filed and we were due a refund, which we are still waiting for. We will have to refile due to our opening of SEP, should we amend after we receive the initial refund? I assume we only receive the difference and hopefully H&R block makes it easy to get this corrected?

Thanks.

jebmke
Posts: 8458
Joined: Thu Apr 05, 2007 2:44 pm

Re: Amending 2016 Taxes

Post by jebmke » Sun Apr 02, 2017 4:11 pm

The 1040X will figure out what you should have paid/got and send you the balance. So, if you paid $200 but should have gotten a $500 refund, when they process the 1040X, since you paid the $200, they will now refund you $700. The tax software should figure all this out for you.

Same on the state - the math is the same. I would wait to file the state amendment until you know the original return has been processed and the (original) refund sent to you. In fact, if it were me, I'd wait for the state to process even before doing the Fed Amendment - then I'd do both amendments at the same time.
When you discover that you are riding a dead horse, the best strategy is to dismount.

dingdongditch
Posts: 20
Joined: Wed Mar 15, 2017 7:25 pm

Re: Amending 2016 Taxes

Post by dingdongditch » Sun Apr 02, 2017 4:22 pm

jebmke wrote:The 1040X will figure out what you should have paid/got and send you the balance. So, if you paid $200 but should have gotten a $500 refund, when they process the 1040X, since you paid the $200, they will now refund you $700. The tax software should figure all this out for you.

Same on the state - the math is the same. I would wait to file the state amendment until you know the original return has been processed and the (original) refund sent to you. In fact, if it were me, I'd wait for the state to process even before doing the Fed Amendment - then I'd do both amendments at the same time.

Thanks for the fast reply, Just when we opened the SEP, you can't tell it what Year the contribution was for, so I wanted to make sure it was attached to Tax Year 2016 so I'd like to get the amended return in before Tax deadline (april 18th). According to my state's website, the refund has been processed but hasn't been deposited as evidenced by our bank accounts of course so I feel like I'd like to knock this off my plate early of course.

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