My taxes were already filed when I received a 1099 for an early withdrawal from a tsp account that I completely forgot about. Federal taxes were already deducted from it and the amount was small so it's not going to increase my income really. I also overpaid on both federal and state since I had additional
My taxes were already filed when I received a 1099 for an early withdrawal from a tsp account that I completely forgot about. Federal taxes were already deducted from it and the amount was small so it's not going to increase my income really. I also overpaid on both federal and state since I had additional funds on top of what they were taking out being taken from my check since I worked two jobs before ( as to not owe) and I just never changed the additional monies being taken out (so I over paid anyways). Would it be necessary for me to file an amendment?
the point is eventually IRS will notify you about the 1099 that you left out, it might not have made a huge difference in your tax return and refund, but it is missing from your reports and IRS wants you to amend your return with a 1040X to set it straight
Yes, you need to amend.
Yes. You absolutely need to amend.
There were taxes withheld but, trust me, it wasn t enough.
Yes, you need to file an amendment.
The extra income might be small, but it might make your refund slightly smaller, and you need to repay that difference. For example if your initial refund was $1,000 but with this extra income it should have been only $800, then you don't just get to keep that extra $200.
You said taxes were withheld from the distribution, but there's no guarantee that it was enough to cover the taxes and penalties due on that income. So its very possible you owe some money back.
If you ignore it, the IRS will catch the error this summer when they cross check your return against the income documents submitted with your SS#. They will recompute your return based on the new information and if you owe part of your refund back they'll send you a bill with interest and penalties added. If they owe you an additional refund because of the extra withholding they will just keep your money until you file an amendment.
So one way or another it will cost you money to ignore this, either in penalties or in lost refund.