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Does anyone know if the Form 1040X instructions cover the IRC 1341 claim of right situations? I'm thinking of amending my return because I didn't handle my bonus repayment correctly last year.
I went through a very similar situation last year with a $30k signing bonus that I had to repay. The IRC 1341 calculation definitely caught me off guard too - my credit was about $1,500 more than what was originally withheld on the bonus. What helped me understand it was realizing that the bonus didn't just get taxed at the flat withholding rate. It pushed me into the next tax bracket for part of my regular income AND caused me to lose eligibility for some education credits I would have otherwise qualified for. When you remove that bonus income and recalculate, you're getting back not just the direct tax on the bonus, but also the "ripple effect" it had on your entire tax situation. The math gets even more complex if you had any itemized deductions that were subject to AGI thresholds. A $25k bonus can easily create a tax impact that's 28-30% of the bonus amount rather than just the 22% flat withholding rate. Your $7,170 credit on a $25k bonus works out to about 28.7%, which seems reasonable given these factors.
Protip: Go first thing in the morning if you can. Lines get insane by lunch time and they might turn u away if they too busy
Been through this exact situation! Got my 5747C letter last year and the whole process was pretty stressful. After doing the in-person verification, it took about 6 weeks for my refund to come through. The key is making sure you bring all the right documents - I brought my driver's license, passport, and a utility bill just to be safe. Also, definitely schedule your appointment ASAP like others mentioned because the wait times are crazy. One thing that helped me was checking my transcript online every week to see if there were any updates. Good luck!
Thanks for sharing your experience! 6 weeks doesn't sound too bad compared to some of the horror stories I've been reading online. Did you notice any specific codes or changes on your transcript that indicated things were moving along? I'm totally new to reading those things and they look like gibberish to me š
@StarSurfer Yeah the transcript codes are super confusing at first! I basically had to google every single code to figure out what was happening. There were a few key ones that showed progress - like when the identity verification was complete, there was a specific transaction code that appeared. Honestly, I wish I had known about some of the tools others mentioned here like taxr.ai back then - would have saved me hours of trying to decode everything myself! The main thing I watched for was any new activity dates, which usually meant something was moving forward in the process.
Did you check if the $581 is from a previous year? Sometimes they'll hold current refunds for old debts
@c09403cce0dc Check your account transcript for previous tax years (2022, 2021, etc). Look for any balance due amounts or unpaid assessments. You can access older transcripts through the IRS website or call their automated line at 1-800-908-9946
My transcript had both 971 and 290 codes. The notice basically said they adjusted my refund amount. After that it took about 3 weeks to get the money deposited
You're way overthinking this! I've amended my taxes three times in one year (don't ask lol) and never got audited. IRS has bigger fish to fry than someone who's trying to pay the right amount. Just do it correctly this time and stop worrying so much!
As someone who works in tax preparation, I can confirm that multiple amendments don't automatically trigger audits, but they do warrant extra care. The IRS processes millions of amendments annually - yours won't stand out just for being a second amendment. What's most important is accuracy and clear documentation. For your second amendment, include a detailed explanation of why you're correcting the first amendment. Something like "Amendment to correct calculation error on previous Form 1040X filed [date]" helps the IRS understand the sequence. A few practical tips: - Double-check all math before filing (consider having someone else review it) - Keep copies of everything, including your explanation letters - Be prepared to wait longer for processing since amended returns take 16+ weeks The fact that you're amending to pay MORE tax actually works in your favor - it shows good faith effort to comply. Just make sure this second amendment is absolutely correct so you don't need a third one!
This is really helpful advice, thank you! I'm in a similar situation as the original poster and the part about including a detailed explanation really caught my attention. When you say "Amendment to correct calculation error on previous Form 1040X filed [date]" - should this go in the explanation section on Part III of the 1040X form, or do you attach a separate letter? I want to make sure I'm documenting this properly since it's my second amendment too.
You should put that explanation directly in Part III of Form 1040X in the "Explain the changes made on this amended return" section. That's the official place the IRS expects to see your reasoning. You can write something like "Correcting calculation error from previous Form 1040X filed on [date]. Original amendment included 1099 income but contained mathematical error in tax computation resulting in underpayment of $XXX." If you need more space than the form provides, you can attach a separate statement, but reference it in Part III by writing "See attached explanation." Keep it concise but clear - the IRS processors appreciate straightforward explanations that help them understand the amendment sequence.
Ruby Knight
This is so frustrating but you're definitely not alone! I've been dealing with the same WMR lockout issue for the past week. Filed in late January, called IRS in early March, got the standard "processing delays" response, and now I'm locked out too. What's really annoying is that I've been super careful about only checking maybe twice a week, but somehow I'm still getting the "exceeded attempts" message. I tried using different browsers and even my phone's data instead of WiFi, but nothing works. The silver lining from reading these comments is that it sounds like this might actually be a sign that our returns are moving through the system? Really hoping that's true because like you, I'm really counting on this money right now. The timing couldn't be worse with everything getting more expensive. Hang in there - seems like we're all in the same boat this year! š¤
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Oliver Brown
ā¢I'm going through the exact same thing! Filed in mid-January, called last week and got the "we're processing, call back in 3 weeks" line, and now I'm mysteriously locked out of WMR even though I've only checked it maybe 4 times total. It's so weird how this seems to be happening to everyone who calls the IRS - like there's some connection between talking to them and getting locked out afterward. I'm really hoping the theory about this being a good sign is true because I desperately need this refund too. The whole system feels broken this year!
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Levi Parker
This is such a relief to read - I thought I was going crazy! Same exact situation here. Filed early February, called IRS last week and got the standard "processing delays, call back in a month" response. The very next day I tried checking WMR (literally my first time checking in over a week) and boom - locked out for "exceeding attempts." What really gets me is how this seems to happen RIGHT after calling them. Like there's something in their system that flags your account once you make contact with customer service? The timing is just too coincidental for all of us. I'm really hoping the theory about this being a processing stage indicator is correct. At this point I'll take any sign of progress, even if it's the system having a meltdown! The financial stress is real - between rent increases and everything else, this refund can't come soon enough. Thanks for posting this @Andre - at least we know we're not alone in this madness! š
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Liam McGuire
ā¢This whole thread is making me feel so much better! I'm dealing with the exact same pattern - filed in late January, called the IRS two weeks ago and got told to wait until May, then immediately got locked out of WMR the next day despite barely checking it. The timing really does seem suspicious, like calling them triggers something in their system. I've been stressed out of my mind thinking something was wrong with my return, but reading everyone's experiences here makes it sound like this might actually be normal (or at least the new normal for 2025). Really crossing my fingers that the theory about this being a sign of progress is true because I'm in the same boat financially - every day this drags on makes things tighter. Thanks everyone for sharing your stories!
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