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Just to add another option - if you used TurboTax and paid for it but didn't file, you can also try calling their customer support directly. They have access to your account history and can sometimes help recover forms even from several years back. I had to do this for a 2018 return last year and they were actually pretty helpful.
Do you remember what number you called? I tried their general support line and got stuck in an automated system that wasn't helpful at all.
I used 1-800-446-8848 which is their customer service line specifically for account issues. When you call, say "account help" or "speak to a representative" to bypass most of the automated system. Be prepared to verify your identity with things like your name, address, and the email you used to create your TurboTax account. Having your Social Security number handy helps too. The wait times can be long during tax season, but if you call early in the morning right when they open, it's usually much shorter.
PSA: If you never filed your 2019 taxes and you were OWED a refund, you only have until April 15, 2023 to file and claim it! After 3 years, unclaimed refunds become property of the US Treasury.
Not at all! Those quarterly estimated tax payments will be credited toward their total tax liability on the joint return. When they file the amended return, they'll include those payments on the appropriate line. The IRS keeps track of all payments made under both SSNs tied to a joint return.
Just want to add - make sure you file the amendment ASAP. I made a similar mistake a few years back (forgot to include some freelance income) and waited too long to fix it. Ended up with penalties that could have been avoided if I'd acted faster. The IRS is generally more lenient if you correct mistakes voluntarily before they find them!
What nobody has mentioned yet is that you might qualify for an "abatement of penalties" even if you have to pay the full tax amount. The IRS has something called First Time Penalty Abatement for people with generally good filing history who made a one-time mistake. When I forgot to report some 1099 income a few years back, I called the IRS and specifically asked for this, and they removed about $3,800 in penalties! You still pay the tax and interest, but removing the penalties can save thousands. Also, if the unreported income was from royalties, make sure they calculated your tax correctly. You might be eligible for certain deductions that would lower the overall bill, like the Qualified Business Income deduction if your music counts as a business.
How do you apply for this First Time Penalty Abatement? Is there a specific form or do you just call and ask? And does it actually work for amounts this large?
You don't need any special form - just call the IRS directly and specifically request "First Time Penalty Abatement" or "FTA." Make sure to call the number on your notice. The size of the penalty doesn't matter for FTA eligibility - it's based on your compliance history. To qualify, you generally need to have filed all required returns and paid (or arranged to pay) any tax due for the past 3 years, and you can't have had penalties in those years either. The IRS agent will check your history right on the call. In my case, they approved it immediately, but sometimes they might need to review further or ask you to submit a written request. Even for large penalties, the approval process is the same. Just be polite but direct about requesting it.
Just one quick warning - if you're thinking about the 10-year statute of limitations as a strategy, be aware that certain actions can extend that period. Filing an installment agreement, submitting an offer in compromise, filing bankruptcy, or leaving the country for an extended period can all add time to that 10-year clock. Also, the IRS interest rate is currently 7% which compounds daily (ouch!) plus failure-to-pay penalties that can add another 0.5% per month up to 25%. So you're looking at something like 13-14% annually, which is definitely higher than average stock market returns. At $25k, I'd strongly consider paying it off ASAP if you have the funds. The peace of mind alone is worth it, plus the guaranteed 13-14% "return" by avoiding those charges beats most investments.
One thing nobody has mentioned yet - did you perhaps make any large one-time payments that resulted in big deductions? Things like: - Making a large charitable donation - Paying points on a new mortgage - Having major medical expenses - Making a large retirement contribution Sometimes these one-time events can cause a big refund that won't repeat next year. If that's the case, you might not need to adjust your W4s as dramatically.
No, we didn't have any unusually large deductions or one-time payments. We just have the standard mortgage interest deduction, and we each contribute to our 401ks at work but nothing extraordinary. We've been in the same house for 5 years and our medical expenses were minimal. I think you guys hit the nail on the head about the dual income thing. We're both making good salaries but neither of us checked the box for "multiple jobs or spouse works" on our W4s. I'm going to have us both submit new W4s with that box checked and see if that helps!
Have you checked if your employers are using outdated W-4 forms? In 2020, the IRS completely redesigned the W-4 form and eliminated allowances. Some companies were slow to update their systems. If you're still using the old form with allowances, that could explain the over-withholding. The new form is much more straightforward for married couples with multiple incomes.
Carmen Ruiz
11 Pro tip from someone who processes payroll: When you file, you might want to include a brief note explaining your name change situation. While the IRS systems can handle the mismatch between your current legal name and what's on your W-2, sometimes having a simple explanation can prevent unnecessary review.
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Carmen Ruiz
ā¢17 Do you actually attach a physical note to the return? Or is there a specific form for name changes that should be included?
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Carmen Ruiz
ā¢11 If you're filing electronically (which most people do now), there's no need for a physical note. There's usually a section in most tax software where you can explain special circumstances, but it's not even really necessary. For paper returns, you can include a brief statement with your return explaining the timing of your name change. There's no specific form required just for a name change situation like this. The most important thing is making sure your current legal name (your married name) is what you use on the tax return itself, and that your SSN is correct on all documents.
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Carmen Ruiz
22 Anyone know what happens if you already e-filed using your maiden name (before updating with SSA) and then changed your name with SSA before the return was processed? Should I be worried?
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Carmen Ruiz
ā¢10 You should be fine. The IRS usually processes returns pretty quickly, and they'll match based on your SSN. But if you're concerned, you might want to keep an eye on your return status using the "Where's My Refund" tool on the IRS website.
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