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A trick that worked for me when I had this issue - try entering your AGI without any cents, just the whole dollar amount. Sometimes the system gets tripped up with decimal places. Also, make sure you're using the AGI from your ORIGINAL filed return, not an amended one if you filed a 1040X later.
What if I filed in a different state last year? Does that affect the AGI I should be using for verification?
Your federal AGI is what matters for IRS verification, regardless of which state you filed in last year. The state you lived in doesn't change your federal AGI number. Your AGI is on line 11 of your 2021 Form 1040, and that's the number you should use for verification even if you moved to a different state.
I had the same problem and tried calling the IRS but was on hold for like 2 hours and then got disconnected!!! So frustrating. What finally worked for me was requesting a tax transcript from the IRS website and using the AGI shown there. Sometimes the AGI on your tax return copy isn't the same as what the IRS has on file if there were any adjustments made.
How long did it take to get the transcript? I need to file ASAP and don't have time to wait for mail.
There's another historical reason for the marriage penalty that hasn't been mentioned yet. The tax system was originally designed when most households had a single income earner. When the system was created, giving married couples higher brackets and deductions made sense because one income supported multiple people. As women entered the workforce in greater numbers, two-income marriages became more common, but the tax code didn't fully adjust. There was also some social engineering at play - some policymakers believed tax benefits should go to "traditional" family structures. The technical term for the issue is "joint return stacking" - when two individual incomes are "stacked" together, progressive tax rates push more income into higher brackets compared to filing separately.
This is really interesting history! Do you know if other countries handle this differently? Like do European countries have marriage penalties too?
Many European countries use individual taxation regardless of marital status, which eliminates the marriage penalty entirely. Countries like the UK, Sweden, and Spain tax individuals rather than couples, so getting married doesn't change your tax situation. Some countries like France use a family quotient system where total household income is divided by the number of family members (with children counting as partial members) before applying tax rates. This creates marriage bonuses rather than penalties. Germany has a system where married couples can effectively split their income evenly for tax purposes, which benefits couples with disparate incomes but is neutral for equal earners. The US system is actually unusual in how it potentially penalizes dual-income married couples compared to most developed nations.
Something nobody's mentioned is that the marriage penalty isn't just about tax brackets! It also hits with phase-outs for deductions and credits. For example, two single people earning $70k each ($140k total) might qualify for certain deductions that phase out at $100k for singles. But as a married couple with $140k combined, they'd be over the married phase-out threshold if it's less than $200k. This happens with student loan interest deductions, Roth IRA contribution limits, and lots of other benefits. These phase-outs often don't double for married couples.
Omg yes! This is exactly what happened to us with student loan interest! When we were both single we could each deduct our student loan interest, but after marriage we lost most of the deduction because of the phase-out. Wasn't expecting that at all!
That must have been an unpleasant surprise! The student loan interest deduction is a perfect example - singles can deduct up to $2,500 if their income is under $85,000 (phasing out starting at $70,000). But for married couples, it starts phasing out at $145,000 and completely disappears at $175,000. So two people each making $75,000 would get partial deductions as singles, but married they might get nothing. It's these little details that can really add up to a significant marriage penalty that goes beyond just the tax brackets themselves.
In my experience as someone who's been through several audits, just pay it and move on. If the mistake was genuinely a typo, then amending would show the same result anyway. The $200 interest is pretty standard - remember that money has time value, and you essentially had an interest-free loan from the government for 5 years. One thing to consider: check if your state tax was also affected by this typo. Often errors on federal returns impact state returns too, and you might have a state tax notice coming as well.
Good point about the state tax! I didn't even think of that. How long would the state typically take to catch up after an IRS audit?
States usually find out within a year after the IRS audit is completed. The IRS and state tax authorities share information, though the timing varies by state. Some states automatically adjust your state tax when they receive info about federal changes, while others require you to file an amended state return within a specific timeframe (usually 30-90 days) after your federal adjustment. If I were you, I'd be proactive and check with your state tax department now. It's always better to address it early rather than let additional interest accumulate if you do owe more.
I had almost the exact same situation! Freaked out when I got the audit letter but it was just a stupid typo on my W-2 transcription. I was wondering about amending vs just paying too.
I'd just pay it. In my experience, amending old returns is a headache and often triggers more scrutiny. Plus you'd still owe the interest regardless.
Has anyone tried the IRS Direct File pilot program? I heard they're expanding it for 2025 and it's completely free with no income limits. Curious if it's user friendly or if it's basically just like using the forms directly.
I was in one of the test states last year. It's pretty basic but works fine for simple returns. The interface is clean but there's minimal guidance - it basically asks you questions and fills in the forms. No fancy explanations or hand-holding like commercial software. The big limitation is it doesn't support all tax situations yet. I couldn't use it because I had HSA contributions. But if you have W-2 income, some 1099 interest, and standard deduction, it works perfectly fine. And you can't beat the price!
One thing to consider - sometimes the paid versions DO get you more money back if your situation is complicated. I switched from TurboTax to H&R Block last year and got an extra $720 back because their question sequence helped me realize I qualified for the Lifetime Learning Credit that TurboTax somehow missed. So maybe try running your info through a couple different free options before filing?
I've had the opposite experience. I did a test last year and entered identical info in TurboTax, H&R Block and FreeTaxUSA. All three gave me exactly the same refund amount. The difference was TurboTax wanted $120, H&R Block wanted $75, and FreeTaxUSA only charged $15 for state filing (federal was free). Tax math is tax math - a deduction or credit works the same way regardless of which software you use.
Sarah Ali
OP, one other thing to check that no one's mentioned yet - look at line 6 of Form 1040X (if an amended return was filed). That line asks about the method used to calculate taxes. Sometimes if this isn't filled out correctly, it can cause major calculation issues. Also, any time the IRS mentions "additional tax assessed" with no clear explanation, double-check that no one filed a return using your SSN. My cousin had this happen and it was a nightmare to straighten out.
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Connor Richards
β’Thanks for this suggestion! I don't *think* I filed an amended return (unless the tax software did something automatically I wasn't aware of). But the identity theft angle is concerning me now. If someone else filed using my SSN, how would I even know? Would it show up clearly on my transcript or would it be hard to spot?
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Sarah Ali
β’If someone filed using your SSN, you would typically see some red flags on your transcript. Look for any entries showing two tax returns processed or unusual refund amounts that don't match what you received. The transcript might show codes like "duplicate filing" or "potential identity theft case." Another sign would be if your transcript shows income amounts significantly higher than what you actually earned. In most cases of tax identity theft, the fraudulent return is filed early to claim a refund before the legitimate taxpayer files. If you suspect identity theft might be involved, you should contact the IRS Identity Protection Specialized Unit at 800-908-4490 right away. They have special procedures for these cases that are separate from the normal assessment dispute process.
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Ryan Vasquez
Just went through this exact situation! Call the IRS (plan to be on hold forever) and specifically ask for a "fully detailed explanation of the additional assessment" - it's different from just asking why you owe money. They can generate a document that breaks down exactly where the tax came from. In my case, it turned out to be some stock sales where the brokerage reported proceeds but no basis to the IRS. I had to fax in documentation showing what I paid for those stocks originally. Super annoying but fixable!
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Avery Saint
β’How long did it take to get resolved after you sent in the documentation? I'm in a similar situation and trying to figure out if I should just pay it to stop the interest from accumulating or wait for them to process my documentation.
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