topic Question Please... in Rebuilding Your Credit

Question Please...

ktm214 — Fri, 19 Apr 2013 01:46:49 GMT

We filed our taxes and used our federal refund toward some debt. My wife did a short sale on a home that she owned. At closing, for whatever reason, she got a check for a couple grand...she got a 1099-misc form in the mail, of course after we filed but before the 15th of April. We filed joint so I suppose that this could affect me if the appropriate taxes are not paid on this money. How do I begin to take care of this? I am no tax expert and file online. Any advice would be welcomed....Thank You

Re: Question Please...

simi_go — Fri, 19 Apr 2013 03:05:36 GMT

Sounds like the short sale was done after January 1 2013? If so it will be filled with your 2013 return next year. If it was this year you can always file an amended return. I am pretty sure you have until July 1 for that but I will let others chime in on that.

Re: Question Please...

kjel — Fri, 19 Apr 2013 03:17:08 GMT

If the 1099 was for tax year 2012 you can file a 1040X to amend your 2012 tax return. If you were owned a refund on your tax return wait until that is processed, same as if you owed and paid. Once your return is processed you can complete the 1040X form and submit it with the documentation. It has to be submitted via snail mail.

You may also have to amend your state tax return as well.

Re: Question Please...

ktm214 — Fri, 19 Apr 2013 11:30:10 GMT

Thank you for the information. The house was definitely sold in 2012. I will do the amended return and send them money. I will do the state one as well. Do you think I have until July or should I do it now?

Re: Question Please...

Rain77 — Fri, 19 Apr 2013 12:04:51 GMT

Check the IRS website, I believe you have a certain amount of time to file the amendment. I had to file one, and I thought is said 3 years, but I could be wrong. Definately check the website - and it should be within the first pages of the instructions for the 1040X