Skip to main content
June 2, 2022
Question

Refund taken in 2022 because I forgot to file a 1099 in 2018 how can I get it t back

  • June 2, 2022
  • 3 replies
  • 0 views

I didn’t  show on my 2018 taxes a hardship loan. I didn’t think I needed to since the taxes were already taken out. They took my entire refund. Is there away to get the refund back?

    3 replies

    Critter-3
    June 2, 2022

    This could not have been the first indication that the 2018 return was incorrect ... and if you fail to respond timely the IRS will correct the return themselves and put a debt indicator on the account and they took the 2021 refund.  If this did not fully satisfy the debt expect a bill to arrive for the balance due.  If you don't pay it then all future refunds will be taken until the debt is paid in full.

     

    If the IRS did not take into consideration the withholding on the distribution then you may be able to send in an amended  return to refute their findings  BUT it may be too late to get any refund of a 2018 payment but you can try.   First I would get a return transcript & account transcript to see what the IRS has for the 2018 return then proceed from there ... you may also seek local professional help to formulate a response. 

    https://www.irs.gov/individuals/get-transcript

     

    June 2, 2022

    please clarify what happened in 2018. a hardship loan is not income at the time of the loan. it would become income if you failed to pay it back and then the year it became income could be other than 2018.

    VolvoGirl
    Employee
    June 2, 2022

    It was not a loan if you got a 1099R for it.  It was a distribution.  And the taxes taken out was not the actual tax on it.  That was just estimated withholding like from paychecks.  You had to enter the 1099R and add it to your total income to calculate the tax on ALL your income.   The 1099R might push you into a higher tax bracket.  So the withholding might not be enough to cover the increase in tax due and any penalties like the 10% Early Withdrawal Penalty.

     

    What code is in box 7 on the 1099R?  Did you pay it back  within 60 days?  And you had to put back the full gross amount including the taxes or the tax withholding becomes a taxable distribution.  

    June 6, 2022

    The code in box 7 is B1 and since the distribution also came from my Roth I have a code 1 as well.. and no I didn’t pay it back it was used as a down payment for a home

     

    Critter-3
    June 6, 2022

    So did you not enter the 1099-R on the original return ?    If you look at your 1040 the distribution would have been reported even if it was not all taxable and the form 5329 should have been filled in as well.   If this is what happened then you may need to send in an amended return to refute that IRS notice.