Forgot to include 1099-INT interest income after filing taxes - what to do?

Having to amend a return for a small amount like this is frustrating, but it's definitely something you can handle yourself without paying someone $100. You'll need to file Form 1040-X (Amended U.S. Individual Income Tax Return) to report the interest income from your 1099-INT. The process isn't super complicated for a simple change like adding interest income. You'll need to download the form from the IRS website, fill in your original information, then add the $650 interest income which will recalculate your tax liability. Make sure to check the box that indicates you're reporting additional income, and include a brief explanation that you received the 1099-INT after filing. For your state return, you'll need to check your state's tax department website for their specific amended return form and process, as each state handles amendments differently.

I went through almost the exact same situation last year with a forgotten 1099-INT from my online savings account. I was stressing about it until I discovered taxr.ai (https://taxr.ai) which saved me so much time and money. I uploaded my original return and the 1099-INT, and their AI assistant walked me through exactly what needed to be changed on my 1040-X. The tool showed me the specific lines that needed to be updated and explained how the additional interest income affected my total tax calculation. It was so much easier than trying to decipher the IRS instructions or paying my accountant another fee. I was able to complete the amended return in about 20 minutes.

I wanted to follow up about my experience with taxr.ai. I was really skeptical at first, but after struggling with the IRS instructions for Form 1040-X for a couple hours, I decided to give it a try. It was honestly so much easier than I expected! I uploaded my original return and my forgotten 1099-MISC, and the system immediately identified exactly what needed to be changed. It explained how my taxable income would increase and calculated the additional tax I owed. The interface even highlighted the specific lines on the 1040-X that were affected. The best part was that it prepared both my federal and state amended returns together, showing me the total impact. Didn't have to pay an accountant $100+ for something that took me less than half an hour to do myself. Just wanted to share since it saved me a ton of headache!

If you need to call the IRS to ask questions about your amended return, good luck getting through! I spent TWO DAYS trying to speak with someone about my amended return situation. Finally discovered Claimyr (https://claimyr.com) which got me connected to an actual IRS agent in less than 15 minutes. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c The IRS agent I spoke with explained that I shouldn't just send a payment without filing the 1040-X, since they wouldn't know what it was for. She also told me that voluntarily fixing the mistake before they send a notice is much better and typically avoids penalties. I was worried about interest charges, but she explained exactly how they would calculate it and it wasn't nearly as bad as I feared.

I have to publicly eat my words about Claimyr. After posting that skeptical comment, I decided to try it anyway because I was desperate to talk to someone at the IRS about my amended return questions. I couldn't believe it when my phone rang 17 minutes later and it was an actual IRS representative on the line! The agent walked me through exactly what I needed to do with my amended return and confirmed that I could e-file it. He even gave me some tips about tracking the processing of my amendment through the Where's My Amended Return tool on the IRS website. For anyone dealing with amended returns or other tax issues where you need to speak with the IRS directly, this saved me literally days of frustration. I was about to pay my accountant $150 for something I was able to resolve with a 10-minute phone call.

For reporting just $650 in interest income, the tax software you used originally might offer a discounted amendment service. I used TurboTax last year and when I had to amend for a missed 1099-INT, they only charged me $29.99 to prepare the amendment instead of the full price. Might be worth checking before going the DIY route.

One thing to keep in mind - while you owe the additional tax, the IRS will ALSO charge you interest from the original due date (April 15) until you pay. And they might hit you with a small failure to pay penalty too. I had this happen with a forgotten 1099-K last year.

I actually had a very similar situation last year with a forgotten 1099-INT from my credit union savings account. The good news is that this is more common than you think, and the IRS is generally understanding about honest mistakes when you proactively correct them. You have a few options here: 1) File Form 1040-X yourself (it's really not that complicated for just adding interest income), 2) Use your original tax software's amendment service if available, or 3) Try one of the AI-assisted tools others have mentioned. Whatever you choose, don't just send a payment without filing the amendment - the IRS needs the proper documentation to know what the payment is for. Also, since you're being proactive about fixing this before they catch it, you'll likely avoid most penalties and just pay the additional tax plus minimal interest. The key is to act soon rather than waiting. The longer you wait, the more interest accumulates, and if the IRS discovers the discrepancy first through their matching program, the process becomes more complicated.

I went through this exact scenario two years ago and completely understand the frustration! Here's what I learned from my experience: First, don't panic - this is incredibly common and the IRS deals with forgotten 1099-INT forms all the time. Since you're voluntarily correcting it before they catch it through their matching system, you're in a much better position. I initially tried to do the 1040-X myself using the IRS instructions, but honestly found it confusing for something that should be straightforward. I ended up using my original tax software's amendment service (I had used FreeTaxUSA) and they charged me $15 to prepare the amended return. It automatically pulled all my original data and just had me add the missing interest income. The whole process took about 20 minutes, and I was able to e-file the amendment. I owed about $180 in additional tax plus around $8 in interest since I filed the amendment about 3 months after the deadline. No penalties because I was proactive about it. One tip: make sure you amend both federal AND state if your state has income tax. Many people forget about the state amendment and then get a notice later. Also, keep detailed records of when you filed the amendment in case you need to reference it later. The $100 your tax preparer wants to charge is highway robbery for such a simple change. You can definitely handle this yourself for much less!

I went through this exact situation last year with a forgotten 1099-INT from Marcus (Goldman Sachs online savings). The stress was real, but it turned out to be much more manageable than I initially thought! Here's what I learned: The IRS has a matching system that eventually catches these discrepancies anyway, so being proactive definitely works in your favor. I filed my amendment about 6 weeks after receiving the missing 1099-INT and avoided any penalties - just paid the additional tax plus about $12 in interest. I used TaxAct's amendment service since that's what I originally filed with, and it cost me $25. The software automatically imported all my original return data and guided me through adding the interest income. The whole process took maybe 30 minutes, and I could e-file it directly. One thing I wish someone had told me: keep checking the "Where's My Amended Return" tool on the IRS website after you file. It takes longer to process than original returns (usually 8-12 weeks), but at least you can track the status. Also, if you have direct deposit set up, they'll deposit any additional refund or charge any additional tax owed the same way. Your $650 interest income situation is very straightforward - don't let your tax preparer's $100 fee scare you into doing nothing. This is exactly the type of simple amendment that the tax software handles really well.