Should I amend my 2023 taxes after discovering missed savings account interest a year later?

Don't beat yourself up over this! Tax rules can be confusing and this is actually a pretty common oversight. Here's what you should know: Yes, the IRS does receive information about your interest income through forms 1099-INT that banks submit. They can match this against what you reported. That said, whether you should amend depends partly on the amount involved. For $380 in interest, the tax impact is relatively small - probably around $40-$100 depending on your tax bracket. While technically any unreported income should be corrected, the IRS generally has bigger fish to fry than small interest amounts. If you want to be 100% compliant, filing Form 1040-X to amend your 2023 return is the proper approach. You'd only need to pay the additional tax plus some interest (no substantial penalty for this type of honest mistake if you amend before they contact you). Alternatively, some people in your situation might wait to see if the IRS sends a notice. They sometimes just assess the additional tax and send a bill rather than requiring a formal amendment.

Been in almost the exact same situation! I forgot about $450 of interest income and was stressing about it for weeks. I tried calling the IRS multiple times but could never get through. Then I found this service called taxr.ai (https://taxr.ai) that helped me figure out exactly what to do. They analyzed my situation and told me the most likely outcomes based on similar cases. Turns out for smaller amounts like ours, the IRS often just sends a letter with the adjusted amount you owe rather than flagging it as a serious issue. The service helped me understand exactly what forms I needed and how to handle the correction properly. They even estimated what penalties might apply if I waited vs amended now. Honestly it saved me so much anxiety just knowing what to expect and having clear steps to follow. Might be worth checking out if you're stressing about this!

Wanted to follow up - I ended up trying taxr.ai after commenting here. It was super helpful! I had a slightly different situation (forgot some dividend income) but the guidance was really detailed. It showed me exactly what would happen if the IRS discovered it vs if I amended, and walked me through the exact forms I needed. I decided to amend and the process was way easier than I expected. The service explained how much I'd likely owe including interest so there were no surprises. Just got confirmation that my amendment was processed and everything's resolved now. Honestly such a relief to have this behind me!

I had a similar issue a few years back but with a much larger amount (accidentally omitted a 1099-R distribution). When I finally realized the mistake, I couldn't get anyone at the IRS on the phone for guidance - spent HOURS on hold over multiple days. Finally discovered Claimyr (https://claimyr.com) which got me connected to an actual IRS agent in about 20 minutes. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c The agent was able to tell me exactly what I needed to do in my situation and confirmed that filing an amendment before they contacted me would prevent most penalties. They also looked up my account and told me they hadn't generated a notice yet, which was a huge relief. For your situation with just $380 in interest, they might tell you it's not even worth amending (some agents are surprisingly practical about small amounts), but at least you'd know for sure.

I take back what I said about Claimyr. After commenting here, I actually tried it for an issue with a missing stimulus payment the IRS claimed they sent me but I never received. I was BEYOND skeptical that this would work, but I'd already spent about 5 hours over 3 days trying to reach someone at the IRS with no luck. The service called me back in about 35 minutes with an actual IRS representative on the line. The agent was able to trace my payment and confirm it was never cashed, and they're now reissuing it. Would have taken me who knows how many more hours of trying without this service. For time-sensitive tax issues, it's seriously worth it.

I'd just amend and be done with it. I had a similar situation with unreported income (about $600 from a side gig) and the peace of mind from fixing it myself was worth it. The 1040-X form isn't that complicated, especially if you're only correcting one item. The way I see it: - If you amend: You pay a little tax plus interest, but no substantial penalties if you do it voluntarily - If you wait and they catch it: You pay the same tax, same interest, but possibly penalties too, plus the stress of getting an IRS notice Also, if the amount pushes you into a different tax bracket or affects any credits you claimed, the impact could be bigger than just the tax on the interest itself.

Totally agree with filing the amendment. I went through this with forgotten stock sales in 2021. When I amended, I thought it would be a huge deal, but it was pretty painless. One tip: if you use tax software like TurboTax or H&R Block, they usually have an option to prepare an amended return based on your original filing. It makes the process WAY easier because they handle all the calculations and format everything correctly. Just make sure you print and mail the amendment - they can't be e-filed yet in most cases. And be prepared to wait a while for processing. Mine took about 4 months to get processed last year.

I'm a tax preparer and see this situation all the time - you're definitely not an idiot! Interest income reporting is one of the most commonly missed items. For $380 in interest, you're looking at maybe $40-95 in additional tax depending on your bracket. The IRS will eventually match your 1099-INT to your return through their automated system, but it can take 1-2 years. My professional recommendation: go ahead and amend. Here's why - if you amend voluntarily, you'll pay the tax plus minimal interest (calculated from the original due date). If they catch it first, you pay the same amounts PLUS potential penalties. The 1040-X isn't complicated for this type of correction. You'll just be adding the $380 to your income and recalculating your tax. Most tax software can handle this easily if you used it for your original return. One thing to keep in mind - make sure you have your 1099-INT form from the bank showing the exact amount. The IRS already has this information, so your amendment needs to match their records exactly.