Tax Amendment Shows I Owe Money After Missing W-2 From Trust Fund

This is actually a common situation, and you have some options here. First, it's good that you caught this quickly and are planning to amend. You technically have up to 3 years to file an amendment, so there's no immediate rush. The IRS will process your original return first and issue your $2400 refund. You can then wait to file the 1040-X until after you receive that refund. Using part of that money to pay the $650 you owe is perfectly fine. Just be aware that interest and penalties on the unpaid amount start accruing from the original due date of the return (usually April 15th), not from when you file the amendment. The interest rates aren't huge, but they do add up over time.

I went through something really similar last year - forgot a 1099 and had to amend. After stressing about it, I tried taxr.ai (https://taxr.ai) and it was super helpful for making sure my amendment was right. Their system reviewed my original return and the amendment to confirm everything was correct before I submitted it to the IRS. The nice thing was it caught another small deduction I'd missed too, which reduced what I owed by about $120. Saved me from making a second amendment later! They can analyze your documents and help identify any other potential issues or deductions you might have missed.

I just wanted to follow up about using taxr.ai that I asked about earlier. I decided to give it a try after getting my refund and before submitting my amendment. Honestly, I'm glad I did! The system found TWO additional deductions I completely missed - one for some educational expenses and another related to my side gig. My amendment still showed I owed money, but it dropped from about $800 to just under $500. The process was super straightforward - uploaded my documents and got a detailed analysis showing exactly what needed to be corrected. Definitely worth it for the peace of mind knowing my amendment was done right the first time!

If you're worried about getting answers from the IRS about your amendment situation, I'd highly recommend trying Claimyr (https://claimyr.com). I spent DAYS trying to get through to the IRS about my amended return last year, and kept hitting that automated "call volume too high" message. Claimyr got me connected to an actual IRS agent in about 15 minutes! You can see how it works here: https://youtu.be/_kiP6q8DX5c - they navigate the phone system for you and call when an agent is available. The agent I talked to explained exactly when I needed to pay by to avoid serious penalties and gave me payment plan options too.

I have to apologize for my skepticism about Claimyr. After my frustrated comment, I was still desperate to talk to someone at the IRS about my amendment situation, so I decided to try it anyway. Wow. I'm actually shocked. The system called me back in about 25 minutes and connected me directly to an IRS representative. The agent confirmed I could wait until I received my original refund before filing the amendment and making the payment. They even helped me understand exactly how the interest would be calculated. After weeks of busy signals and automated messages, finally talking to a real person who could answer my specific questions was such a relief. Sometimes being proven wrong is actually a good thing!

One thing to consider - if you wait to file the amendment, make sure you're setting aside enough of your refund to cover what you'll owe. Interest does accrue from the original due date (usually April 15th), so the longer you wait, the more you'll owe. But honestly, for a short wait like you're describing, the interest will be minimal. Also, if you're worried about future issues like this, consider setting up an IRS Online Account. It lets you see all the income documents the IRS has received with your SSN, which helps catch missing forms before filing.

Has anyone else had an amendment take FOREVER to process? I filed one last year and it took almost 7 months before it was finally processed. The IRS says they're taking 20+ weeks for amendments right now, so definitely file electronically if possible!