Do I need to file a 1040x?

Dessie
Dessie Member Posts: 1 Newcomer
in General

in 2024 we used another tax provider. I neglected to add the traditional and Roth IRA contribution as I don’t have employer contributions. We paid over $8000 in taxes but neglected to claim my IRA contributions. The other tax program I paid for did not catch this possible error. I paid in $3900 to Roth and $3900 to traditional IRA.
Do I have a case to file a 1040x?

Tx

Dessie

Answers

  • JanaA
    JanaA FreeTaxUSA Agent Posts: 181 image
    Hello Dessie! There are a couple things to consider. Roth IRA contributions will not reduce your taxes. Traditional IRA contributions, on the other hand, can be deductible, which is where you may have a case for an amendment.

    Whether your $3,900 traditional IRA contribution is deductible depends on two things: your income (Modified Adjusted Gross Income, or MAGI) and whether you or your spouse are covered by a workplace retirement plan such as a 401(k). If neither of you is covered by a workplace plan, the contribution is generally fully deductible regardless of income. If one of you is covered by a workplace plan, the deduction phases out at certain income levels. For 2024, the full deduction is available for married filing jointly filers with a MAGI under $123,000 (if covered by a workplace plan), and the deduction phases out completely above $143,000. If neither spouse has a workplace plan, the deduction is available at any income level.

    If you determine the traditional IRA deduction applies to your situation, filing a 1040-X would be the right move. Since you filed with another provider, you can still use FreeTaxUSA to prepare your amended return. You would create an account, re-enter your original tax information to match what was filed, and then add the traditional IRA contribution. When you reach the Filing Method screen, choose to mail your return, and once your original return information is confirmed, you can select the option to amend. The IRS generally allows amended returns to be filed within three years of the original filing deadline, so you have time.

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