I inherited money last year and completely forgot to mention it to my tax preparer. Should I be worried? Do I need to file an amended return?

Sorry for your loss, Yuki. Estate matters can definitely be overwhelming when you're still grieving. Everyone here has given you solid advice about the tax implications. Since you're in Texas and receiving proceeds from a house sale and savings accounts, you should be good on both federal and state taxes - no inheritance tax in Texas, and standard inheritances aren't taxable income to beneficiaries. One practical tip: when you do receive the money, keep all the documentation from the estate (distribution letters, any tax forms the estate files, etc.). Even though you likely won't owe taxes on the inheritance itself, having this paperwork will be helpful for your records and might be needed if you ever sell inherited assets in the future. Also, don't feel pressured to make any big financial decisions with the money right away. Take some time to process everything first. The money will still be there when you're ready to decide what to do with it.

Reading through all these great suggestions, I wanted to add one more potential source of that remaining $3,200 discrepancy that I've encountered with construction partnerships before. Check your materials inventory carefully. Construction companies often purchase materials for specific jobs but may have leftover supplies at year-end that should be recorded as inventory assets rather than expensed. Things like: - Unused concrete, lumber, or other bulk materials purchased late in December - Hardware and small tools that were bought for jobs but not fully consumed - Fuel stored in tanks at the yard or job sites Also, verify how you're handling progress billings versus revenue recognition. If the partnership uses the completed contract method, make sure unbilled work (earned but not yet invoiced) is properly recorded as an asset, and any advance payments from customers are recorded as liabilities until the work is completed. Given that you've methodically worked through the major items and have such great advice from everyone here, I'm confident you'll track down that final amount. The construction industry has so many moving parts that these Schedule L balancing acts can feel overwhelming, but you're clearly approaching it systematically and that's exactly how these puzzles get solved!

This has been an incredibly helpful thread to follow! As someone who occasionally helps family members with their tax returns, I'm bookmarking this entire discussion for future reference. One small addition that might help with tracking down remaining discrepancies - I've found that bank reconciliations can reveal timing issues that affect Schedule L. Sometimes deposits in transit or outstanding checks at year-end don't get properly reflected in the balance sheet accounts. It's worth pulling the December bank reconciliation and making sure any reconciling items are correctly handled on Schedule L. Also, if the partnership has any credit cards, check for outstanding balances at December 31st that might not have been recorded as liabilities. Business credit cards used for job expenses throughout the year can easily have year-end balances that get overlooked. The systematic approach everyone has shared here really demonstrates why professional tax preparers are worth their fees for complex returns like partnerships. The number of places where errors can hide is truly eye-opening!

I appreciate everyone sharing their experiences with similar situations - it's really helpful to see how others have handled missing 1099 forms! As someone who's been through tax season stress before, I'd echo what the tax professionals have said: for a $28 difference on a return with a $6.5k refund, waiting for your original return to process is definitely the way to go. The IRS can clearly see you're not trying to hide income when you're due such a large refund. One thing I'd add is to make sure you keep good documentation of when you discovered the error and your decision-making process. If you do get any correspondence from the IRS later (which is unlikely for such a small amount), having a paper trail showing you identified and planned to correct the mistake promptly will work in your favor. The automated processing for your e-filed return should get you your refund quickly, and then you can file the 1040-X without the time pressure. Sometimes the best approach is the simplest one - especially when multiple tax professionals are giving you the same advice!

I'm a newcomer here but dealing with something very similar! I just e-filed my return yesterday and realized this morning that I completely missed a 1099-MISC for some freelance work I did last year. The additional tax would only be about $19, but I'm panicking because it's my first time making a tax mistake like this. Reading through all these responses has been incredibly reassuring. It sounds like the consensus from both tax professionals and people with actual experience is pretty clear: wait for the original refund to process first, then file an amended return. What I found most helpful was learning that e-filed returns go through automated processing (2-3 weeks for refunds) while amendments require manual review (16+ weeks). For such small amounts, it makes total sense to get the original refund first rather than getting stuck in the slower amendment process. I'm also relieved to learn that the IRS document matching doesn't typically happen until late summer/fall, so there's plenty of time to self-correct. The point about voluntary compliance being viewed favorably by the IRS really takes the pressure off too. Thanks everyone for sharing your experiences - it's so helpful to see that this is a common situation with a straightforward solution rather than the catastrophe I was imagining in my head!

Watch out if you're using TurboTax to file! I had this exact situation last year and TurboTax incorrectly tried to make me pay taxes on the ENTIRE distribution, not just the earnings. Had to manually override it by entering the taxable amount exactly as shown on the 1099-R instead of letting TurboTax calculate it.

This is such a common source of confusion! I went through something similar last year and want to add a few practical tips that helped me: 1. Double-check your 1099-R box 2a (taxable amount) - it should only show the earnings portion, not your full contribution amount. If it shows the full amount, your brokerage may have made an error. 2. Keep detailed records of the timeline - the fact that you requested the return of excess contributions before your extended filing deadline (you filed in July 2023) is crucial for confirming this gets reported on your 2023 return. 3. If you're using tax software and it's giving you trouble with the PJ code, try entering it as "other retirement distributions" rather than letting it auto-categorize. This often bypasses the software's incorrect assumptions about Roth distributions. The key thing to remember is that since you corrected the excess contribution before filing your 2022 return, it's treated as if the contribution never happened for 2022 tax purposes. That's why everything gets reported in 2023 - the year the actual distribution occurred. Also worth noting: save all your documentation about this transaction. The IRS sometimes sends automated notices about retirement distributions, and having your paperwork organized will save you headaches if you need to respond to any correspondence.

I'm going through the exact same thing right now! Got my DDD for 4/3 this morning too and have been refreshing SBTPG every few hours. Based on what everyone's saying here, it sounds like we should see an update within the next day or two. Really hoping it comes through soon since I've got some overdue bills that need attention. The waiting is honestly the worst part of this whole process - especially when you're counting on that money for essential expenses. Keep us posted on when yours updates!

I've been tracking SBTPG timing for the past three years and can share some patterns I've noticed. Generally, SBTPG updates to "funded" status within 24-48 hours after your transcript shows a DDD, but there are a few factors that can affect this: 1. Day of the week your DDD falls on - weekend DDDs often see SBTPG updates on the following Monday 2. Tax season volume - early April is peak time so there might be slight delays 3. Whether you have fees being deducted - sometimes this adds a few hours to processing For your 4/3 DDD, I'd expect SBTPG to show funded by Friday evening at the latest. Once it shows funded, most banks post the deposit within 24 hours, though some (like Chime, Capital One) do it almost immediately. The key thing to remember is that your DDD is when the IRS plans to send the money, not necessarily when SBTPG receives it. Hang in there - based on the timeline, you should have your funds by early next week!