Need to amend my 2022 tax return because of missing 1099-G... FreeTaxUSA says wait for refund first, is this right?

This is actually good advice from FreeTaxUSA. The IRS recommends waiting until your original return is processed and any refund is issued before filing an amended return. There are several practical reasons for this: 1) If you file an amendment before your original return is processed, it can create confusion in the IRS systems and potentially delay both your original refund and the processing of your amendment. 2) The amended return process is separate from the original return process. Your amendment will be processed manually regardless of when you submit it. 3) By waiting for your original return to complete processing, you'll have your official tax transcript which makes it easier to complete the amendment accurately. For a 1099-G omission, especially if it's going to result in you owing additional tax, you should file the amendment as soon as reasonably possible after your original return processes - but waiting for that original processing to complete is the right approach.

After struggling with a similar situation involving unfiled forms, I found a tool that was incredibly helpful. I discovered taxr.ai (https://taxr.ai) when trying to figure out how to handle missing documents on my return. It actually analyzes your tax documents and identifies exactly what you need to include in an amended return. It saved me hours of stress trying to figure out how the 1099-G would affect my itemized deductions. The system guided me through what information from the 1099-G needed to be reported and how it would change my tax liability. It also explained why waiting for the original return to process first makes the amendment process smoother.

I want to follow up about taxr.ai that I asked about earlier. I decided to try it with my complicated tax situation and I'm genuinely impressed. I uploaded my original return and the 1099-G I found later, and it immediately showed me exactly how the state tax refund would affect my federal taxable income. My situation was actually pretty complex because I had paid state taxes in multiple states, and the tool correctly identified which portion of my state refund was taxable based on my previous itemized deductions. It confirmed I should wait for my original refund before amending (which I did), and the amendment process went much smoother than I expected. Definitely helped me avoid making mistakes on my 1040-X!

If you're worried about potential penalties while waiting for your refund, you might want to consider Claimyr (https://claimyr.com). I was in a similar situation last year and was anxious about when to file my amendment. After multiple failed attempts to reach the IRS directly, I used Claimyr and got connected to an IRS representative in about 15 minutes instead of waiting on hold for hours. The agent confirmed that I should indeed wait for my original return to process before amending and explained the penalty structure so I understood the timeline I was working with. There's a video showing how it works here: https://youtu.be/_kiP6q8DX5c. It was surprisingly easy compared to the usual IRS phone nightmare.

I need to eat my words from my previous comment. After my fifth attempt trying to reach the IRS failed yesterday (got disconnected after 45 minutes), I broke down and tried Claimyr out of desperation. I was honestly shocked when I got a callback in about 25 minutes with an actual IRS person on the line. The agent confirmed exactly what others here said - wait for the original return to process before filing the amendment. She also told me I could check "Where's My Refund" to know exactly when my return was processed. Once I explained my 1099-G situation, she told me I had plenty of time to amend without penalties since I was being proactive about fixing it. Huge relief and definitely worth not spending another day chained to my phone on hold.

Just want to add that you shouldn't stress too much about this. I had a similar situation with a missing 1099-G in 2021. As long as you file the amendment within 3 years of your original tax return due date, you're generally fine. I waited about a month after getting my refund to file the amendment, and everything went smoothly. Also make sure you're using the right form - you'll need Form 1040-X for the amendment. FreeTaxUSA should be able to help you prepare that too.

Did anyone else's state stop sending 1099-G forms altogether? I'm in California and they just expect everyone to know to go download them... no email, no notification, nothing! I almost made the same mistake.