Should I file a Form 1040-X for 2025

Uncle__Geigi
Uncle__Geigi Member Posts: 3 Newcomer
in After you file

After I filed my 2025 taxes on FreeTaxUSA, a fintech bank sent me a corrected Form INT-INT-1099. The fintech bank which operates under a phone company's name uses FDIC insured banks so that the funds will be insured. It used two different banks in 2025. The first bank reported the correct amount of interest but the second bank reported not only interest for 2025 but also approximately twenty-five dollars earned in 2026. The correction takes off that 2026 interest but will the IRS automatically correct my taxes or must I file a Form 1040-1040-X? Or the bigger question still, is it worth filing a Form 1040-1040-X over a small amount like twenty-five dollars even though I might be taxed on it twice?

Answers

  • MatthewD
    MatthewD FreeTaxUSA Admin, FreeTaxUSA Agent Posts: 1,010 image
    Hi Uncle__Geigi,

    The IRS will correct clerical errors, like addition and subtraction, at the time you file, but omissions like that, may take 18-24 months. If you owe tax they will tack on interest.

    My suggestion is to amend your return and make that correction. If you have Deluxe or Pro Support the amendment is included and will not cost any extra.

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