Question

Getting notice from IRS I owe taxes after filing with Turbo Tax

Forum|Forum|6 years ago
August 10, 2019
1 reply
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I had to file an amended return because I forgot about an early 401K withdrawal I took in January 2018. The gross amount was only $2600. I had taxes deducted on the 1099 plus more deducted when I did the amended return on Turbo Tax and I ended up paying back about $260 after initially receiving a $1500 refund. Now I'm getting mail from the IRS saying I owe another $597 which matches exactly the tax that was withheld on my 1099-R. I am working on writing a letter to the IRS explaining this and sending it to them certified. Any other suggestions?

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A

Anonymous

i can understand the withholding shown on the 1099. you state "plus more deducted when I did the amended return" This does not seem possible, so could you please clarify this.

on an early withdrawal of $2,600 you would owe a penalty of 10% or $260. in addition you would owe ordinary income taxes less what was withheld. in addition there would be late payment penalties and interest if you file the amended return after 4/15/19

we can't see your return or amended return so we can't say if additional income would affect other items on your return such as credits, itemized deductions, etc.

it is entirely possible you are right and the IRS made an error when process the 1040-X. however, 1st i would check the submitted return to make sure everything is correct. next I would download a transcript of the return from the IRS website and compare it to the 1040-X to verify that it is an IRS error rather than an entry error you made.