Does the IRS automatically send your amended federal return to your state tax department?

How long does an amended return usually take to process? I heard the IRS is super backed up right now. And do you have to mail it in or can you e-file amendments now?

Amended returns are currently taking about 16-20 weeks to process according to the IRS, though it can sometimes be faster. This is definitely longer than the typical processing time for original returns. Yes, you can now e-file Form 1040-X for amended returns for tax years 2019 and later using most major tax software. This is relatively new - for many years amended returns could only be filed by mail. E-filing is typically faster and lets you track your amendment status more easily through the IRS "Where's My Amended Return" tool.

Does it actually help with the forms or just give advice? I'm worried about making more mistakes on my amended return than I did on the original lol.

Sounds interesting but how does it know the specific rules for different states? I'm in California and they have their own weird system for everything tax related.

It helps with both the forms and specific guidance. The tool breaks down exactly what lines need to be changed on your 1040-X and supporting schedules, and provides fillable fields that check your math as you go. It definitely reduces the chance of new errors! The system knows the rules for all 50 states. For California specifically, it handles the 540-X form and all the state-specific adjustments. California does have their unique tax system, but the tool is updated with all their current regulations and will tell you exactly what needs to be reported to the FTB after a federal amendment.

Wait how does this work? I thought it was impossible to get through the IRS phone system without waiting for hours. Do they have some special connection or something?

Sounds like BS honestly. Nobody can magically get through to the IRS faster than anyone else. They're probably just charging you for something you could do yourself with enough patience.

They use a system that automatically navigates the IRS phone tree and waits on hold for you, then calls you when an actual agent is on the line. It's basically like having someone wait on hold so you don't have to waste your whole day listening to that terrible hold music. I was skeptical too at first, but it's not magic - just technology that saves you time. You're right that anyone could eventually get through with enough patience, but after trying for literal days and getting disconnected multiple times, I was desperate. Worth it for the time I saved and the peace of mind getting my questions answered directly by an IRS agent.

Do you know if the deadline is based on when you FILED the federal amendment or when it was ACCEPTED by the IRS? With processing delays I'm worried about timing.

Most states consider the deadline from when you filed the federal amendment, not when it was processed or accepted. Keep proof of when you submitted your federal amendment (delivery confirmation if mailed, acknowledgment if e-filed). Some states like California and New York specifically state it's from the "final determination date" of your federal changes, which is typically the date on the IRS notice you receive after they process your amendment. But the safest approach is to file your state amendment soon after your federal one to avoid any issues.

That sucks! How much was the penalty? I'm worried about the same thing happening to me.

@Anna Stewart It wasn t'too bad - about $75 in penalties and maybe $20 in interest since I caught it relatively quickly about (4 months late .)But it could have been much worse if I d'waited longer. NY is pretty strict about their deadlines. The annoying part was that I actually owed them MORE money after the federal changes, so they got extra tax plus penalties for being late to pay them! Definitely file your state amendment as soon as you can after your federal one.

You've got it exactly right! And great question about how federal changes affect state taxes - it really can go either way depending on your specific situation and state rules. If your federal amendment increases your federal AGI (adjusted gross income), it will likely increase your state taxable income too since most states start with federal AGI. But the actual tax impact depends on things like state-specific deductions, credits, and tax rates that might be different from federal. For example, if you're correcting something like missed income, you'll probably owe more to both. But if you're adding a deduction that your state doesn't recognize, or if your state has different tax brackets, the impact could be proportionally different. Some states also have their own credits that might offset federal changes. The safest approach is to run the numbers through your state tax software or forms when you prepare the amendment - don't just assume the dollar impact will be the same as your federal change. Most tax software will automatically adjust state calculations when you input federal changes, which makes this easier to figure out.

This is all really helpful information! As someone who's never had to deal with amendments before, I had no idea about the estimated tax payment adjustments. That's definitely something I wouldn't have thought of on my own. Quick question - when you say "adjust estimated payments for the current year," do you mean I need to recalculate what I should be paying going forward, or do I need to somehow go back and fix the payments I already made earlier this year? I'm worried I might have underpaid my Q1 and Q2 estimates if my corrected income is higher than what I originally calculated. Also, does anyone know if there's a grace period or safe harbor rule if you're making good faith efforts to correct everything promptly? I'm trying to get all of this sorted out as quickly as possible but there are so many moving pieces!