How to handle unclaimed income from 1099-INT form after filing taxes?

So I'm in a bit of a pickle. I filed both my federal and state tax returns on 2/18/2025 and was feeling pretty good about it. Then literally THE NEXT DAY, I get a 1099-INT form in the mail from my high-yield savings account. Talk about bad timing! The form shows I earned about $878 in interest last year that I completely forgot to include on my returns. I've already received both my federal and state refunds - they're sitting in my bank account right now. Obviously the IRS didn't catch this missing income yet. I reached out to my tax preparer about fixing this, but she wants to charge me $135 for preparing an amended return. That seems steep considering I only owe the feds about $193 in taxes on this interest income. Has anyone dealt with this before? Is filing an amended return something I can handle myself without paying my tax person? I tried looking on the IRS website to see if I could just send them the additional payment for the unclaimed interest income, but it doesn't seem that straightforward. I really wish I could just log onto the IRS website and make a simple payment of $193 for tax year 2024 without all the hassle of filing an amended return. Any advice would be appreciated!

0 coins

19 comments

Charlotte Jones

•8M

This is actually a pretty common situation! You definitely need to report that interest income, so you're doing the right thing by addressing it proactively. Yes, you can absolutely file an amended return yourself. You'll need to complete Form 1040-X (Amended U.S. Individual Income Tax Return). It's not terribly complicated, especially for a straightforward situation like adding interest income from a 1099-INT. The form has three columns: Column A shows the original amounts, Column B shows the changes, and Column C shows the corrected amounts. You'll also need to attach a new Schedule B if the interest puts you over the reporting threshold, and possibly a revised Schedule 1 for the additional income. The IRS doesn't currently have a way to just "pay the difference" without filing an amended return - they need the paperwork to know what the payment is for.

0 coins

Charlotte Jones

•8M

Yes, most states require you to file an amended state return if you amend your federal return. Since the interest income would also be taxable at the state level in most cases, you'd need to report the additional income to your state tax agency as well. Each state has its own amended return form - usually it's something like Form IT-X or Schedule AMD. Processing time for amended returns is unfortunately much longer than regular returns. The IRS says it can take up to 16 weeks (about 4 months) to process an amended return. Sometimes it takes even longer, especially during busy tax seasons. State processing times vary, but they're usually a bit faster than the IRS.

0 coins

Harper Thompson

•8M

I went through almost the exact same situation last year with a forgotten 1099-INT from my online savings account. Instead of paying someone, I tried using taxr.ai (https://taxr.ai) and it saved me a huge headache. You just upload your documents and it shows you exactly what changed on your tax return when adding the new 1099-INT. It walks you through the whole amended return process and explains exactly which boxes to fill out on the 1040-X. It even calculated the interest I owed on the late payment. The step-by-step guidance made it super simple to file the amendment myself without stressing about doing it wrong.

0 coins

Harper Thompson

•8M

Yes, it handles state amended returns too! It automatically detects which state you filed in and guides you through the specific state amendment form. Really helpful since every state has different requirements. It does both - it fills out the forms with the correct numbers and provides clear instructions. It recalculates everything across all schedules and tells you exactly what changed. For example, when I added my missed 1099-INT, it showed me how it affected my AGI, taxable income, and even updated my qualified dividend calculations. The best part was seeing side-by-side what changed between my original and amended return.

0 coins

Jade O'Malley

•8M

I just wanted to update everyone. I was skeptical about taxr.ai but decided to give it a try after getting quoted $200 by my accountant to amend my return for a missed 1099-INT. The process was WAY easier than I expected. I uploaded my original return and the new 1099-INT, and it immediately showed me exactly what changed and why. The step-by-step instructions for filling out the 1040-X were crystal clear - it even explained which supporting forms I needed to include. When I printed everything out, it was organized exactly how the IRS wants it. Just mailed everything off yesterday, and it took me maybe 30 minutes total to complete. Honestly wish I'd known about this sooner - would have saved me so much stress about getting it right! And it cost WAY less than what my accountant wanted to charge.

0 coins

Hunter Edmunds

•8M

If you're concerned about making sure the IRS gets your amended return and payment processed correctly, I highly recommend using Claimyr (https://claimyr.com) to actually speak with an IRS agent directly. I had to file an amended return last year for a missing 1099-INT and got super paranoid when I didn't see any updates after 2 months. I spent DAYS trying to get through to the IRS on my own with no luck. Then I found Claimyr and within 35 minutes I was actually talking to a real IRS agent who confirmed they received my amended return and payment. You can see how it works here: https://youtu.be/_kiP6q8DX5c Totally changed my perspective on dealing with the IRS. Now I don't wait for hours hoping someone will pick up.

0 coins

Hunter Edmunds

•8M

The service uses an automated system that navigates the IRS phone tree and waits on hold for you. Then when an agent actually picks up, you get a call connecting you directly to them. So you don't have to sit there listening to the hold music for hours. They're not doing anything you couldn't technically do yourself - they're just using technology to handle the painful waiting part. Think of it like having someone wait in a long line for you, then texting you when you're about to reach the front. The IRS doesn't know or care how long you personally waited on hold - they just answer when someone reaches the front of the queue.

0 coins

Andrew Pinnock

•8M

I need to apologize for my skepticism about Claimyr. After struggling for weeks to get information about my amended return with the missing 1099-INT, I was desperate enough to try it. I was SHOCKED when I got a call back in about 40 minutes connecting me to an actual IRS representative. The agent confirmed my amended return was received and answered all my questions about the timeline and what to expect next. She even gave me detailed information about the interest calculation that would apply. What would have been another day of frustration and hold music turned into a 15-minute productive conversation. I'm still amazed this actually worked. For anyone dealing with amended returns or trying to get specifics from the IRS, this is absolutely worth it.

0 coins

Brianna Schmidt

•8M

Just a heads up - if you're amending because of a 1099-INT that came late, you might also want to check if you need to pay estimated tax penalties. Sometimes when you have income that wasn't withheld (like interest), you're supposed to make estimated payments throughout the year. The IRS has a "safe harbor" rule where you generally won't face penalties if your withholding and estimated payments total at least 90% of your current year tax or 100% of your prior year tax (110% if your AGI was over $150,000).

0 coins

Brianna Schmidt

•8M

Yes, technically the safe harbor rules apply regardless of the amount. However, in practice, for relatively small amounts like $900 in interest resulting in under $200 in additional tax, the penalty would be very minimal - we're talking maybe a few dollars at most. The IRS calculates the penalty based on how much you underpaid and for how long. Since the interest is usually earned throughout the year, the penalty isn't on the full amount for the full year. Many people with smaller amounts of interest income don't worry about making quarterly estimates because the potential penalty is so small, but technically you're supposed to cover your tax obligations as you earn income.

0 coins