# Ammended taxes?



## berniej (Mar 5, 2012)

can ammended taxes be ammended if you find you made a mistake.

Bernie


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## Bevdeforges (Nov 16, 2007)

Your returns can be amended if you need or want to change something. If that change results in a difference in the taxes you owe or the refund you are due, then definitely you should amend.

General rule of thumb, though, is that you shouldn't attempt to amend for at least a month or two after you've initially filed your return. If the amended return gets processed before the original return, it really messes things up - because there, they really do match up the returns.

Another rule of thumb, however, is not to amend unless your mistake is "significant" and actually does result in a change in the tax due or refund. Minor mistakes are best left alone.
Cheers,
Bev


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## berniej (Mar 5, 2012)

I was going to ammend the last say5 years as I never did my foreign income only my military pension on a 1040A.
Figured it would get my taxes straighten out.

thanks again

Bernie





Bevdeforges said:


> Your returns can be amended if you need or want to change something. If that change results in a difference in the taxes you owe or the refund you are due, then definitely you should amend.
> 
> General rule of thumb, though, is that you shouldn't attempt to amend for at least a month or two after you've initially filed your return. If the amended return gets processed before the original return, it really messes things up - because there, they really do match up the returns.
> 
> ...


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## Bevdeforges (Nov 16, 2007)

It's up to you how you want to handle it. As long as your foreign income consists mainly of earned income (i.e. salary) that will just be excluded under the FEIE, I wouldn't bother. Report it going forward, but if they haven't come back to you after 4 years (statute of limitations), it's really unlikely they're going to care one way or another - particularly if there are no taxes due on the amount.

Back in the US, the IRS does match up the W-2 it received from your employer against the amount you report on your tax return. When you work overseas, they have nothing that reports your overseas income to them "independently" so they have nothing to compare to. It really becomes more of an "honor system" at that point.

The current flap about reporting bank accounts and interest is because of the FATCA laws that are kicking in at the moment. These attempt to make the foreign banks responsible for reporting accounts held and interest paid to "US persons" - but it remains to be seen how much compliance the IRS will manage with the foreign banks. This is far more critical to the US government because income from foreign ("off-shore") accounts and investment assets IS taxable in the US and may very well yield some significant amounts of back taxes.
Cheers,
Bev


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## berniej (Mar 5, 2012)

Thank you.

Bernie





Bevdeforges said:


> It's up to you how you want to handle it. As long as your foreign income consists mainly of earned income (i.e. salary) that will just be excluded under the FEIE, I wouldn't bother. Report it going forward, but if they haven't come back to you after 4 years (statute of limitations), it's really unlikely they're going to care one way or another - particularly if there are no taxes due on the amount.
> 
> Back in the US, the IRS does match up the W-2 it received from your employer against the amount you report on your tax return. When you work overseas, they have nothing that reports your overseas income to them "independently" so they have nothing to compare to. It really becomes more of an "honor system" at that point.
> 
> ...


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## Ladyhawk (Sep 11, 2011)

I sent off my 2010 return in haste last August because I just realized I had to do it. I listed my dividend and interest income on the 1040, about $3800, and I filled in Form 1116 with "foreign Income" which was really based on income splitting from my husband's pension (he is NRA). In other words, it was based on the Canadian law that allows him to "split" his pension with me for tax purposes in Canada. It came to about $34,000.

Now that I think about it, however, I do not need to report that income to the IRS since it wasn't my income, it was merely a legal accounting device in Canadian tax law that leads to lower taxes for my husband. 
I owed no income tax anyway so perhaps I should just leave it. But for 2011 I will not report that income, only my dividend and interest income plus capital gains from selling stock. It won't be more than $4000. I wonder if I should amend my 2010 return?


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## Bevdeforges (Nov 16, 2007)

Ladyhawk said:


> I sent off my 2010 return in haste last August because I just realized I had to do it. I listed my dividend and interest income on the 1040, about $3800, and I filled in Form 1116 with "foreign Income" which was really based on income splitting from my husband's pension (he is NRA). In other words, it was based on the Canadian law that allows him to "split" his pension with me for tax purposes in Canada. It came to about $34,000.
> 
> Now that I think about it, however, I do not need to report that income to the IRS since it wasn't my income, it was merely a legal accounting device in Canadian tax law that leads to lower taxes for my husband.
> I owed no income tax anyway so perhaps I should just leave it. But for 2011 I will not report that income, only my dividend and interest income plus capital gains from selling stock. It won't be more than $4000. I wonder if I should amend my 2010 return?


I wouldn't bother amending unless it makes a difference in the amount owed. If you owed $0 and still will owe $0 after amending, then just let it go.
Cheers,
Bev


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