When do I file my 1040X?

April 18, 2011 8:46 PM

I just realized I made a mistake on my NJ state income tax return *after* I e-filed it with TurboTax. The mistake turns my refund into a payment. Should I wait until the incorrect refund clears and then file a 1040X, or just file the 1040X immediately?

I work in NYC, but live in NJ. Within TurboTax, I mistakenly marked one of my W2s as NJ tax withheld when it should've been NY withheld. This screwed up my NJ 1040 and gave me a refund.

After correcting it in TurboTax, I end up actually owing a little bit instead of getting a refund. Should I wait for the false refund to clear before filing a 1040X? Moreover, do I include the incorrect refund as part of my payment?

posted by fennokin to Work & Money (9 answers total)

Best answer: It doesn't matter. 1040X is on paper and needs to be physically mailed. It takes 8 to 12 weeks to process. Your refund will arrive before the envelope containing your 1040X is even opened.

Regardless of processing time, your 1040X won't change the refund – it's a separate proces, not an amendment to an existing one. I've had to file 1040X twice.
posted by halogen at 11:33 PM on April 18, 2011

You would want to get the check in the mail asap because it will start accruing interests and possible penalties.
posted by metahawk at 12:21 AM on April 19, 2011 [1 favorite]

Just send in the correction with your check. It'll sort itself out eventually, but you want to get as early a postmark as you can.
posted by valkyryn at 5:08 AM on April 19, 2011

I would include payment + incorrect refund if you can swing it financially so that in the worst case scenario the government still owes you. Penalties + interest are not nice.
posted by zug at 7:42 AM on April 19, 2011

You can probably include a note along with your 1040X explaining what you've done so it's transparent.
posted by zug at 7:43 AM on April 19, 2011

The sooner the better.
posted by jeffamaphone at 9:57 AM on April 19, 2011

Best answer: File a 1040X with the check (you're probably too late to avoid penalties now). I did the same thing -- I pulled the trigger too fast on my TurboTax e-filing, and I just corrected it, had it print out the 1040X (along with the appropriate state amendment), sent in the check, and no worries.
posted by babbageboole at 1:07 PM on April 19, 2011

File immediately unless you want to pay extra interest.
posted by JJ86 at 7:46 AM on April 20, 2011

Response by poster: Thanks for all the help. I didn't realize TurboTax created the 1040X for you.
posted by fennokin at 7:52 AM on April 20, 2011